Following Unprecedented Winter Storm in Texas and Protection Granted under the CCAA in Canada, Just Energy Receives Chapter 1...
09 Mars 2021 - 9:53PM
Just Energy Group Inc. (“Just Energy” or the “Company”) (TSX:JE;
NYSE:JE), a retail energy provider specializing in electricity and
natural gas commodities and bringing energy efficient solutions and
renewable energy options to customers, further to its press release
from earlier today announced that it has received creditor
protection under Chapter 15 of the Bankruptcy Code in the United
States. The Chapter 15 order by Bankruptcy Judge Marvin Isgur in
the Southern District of Texas recognizes the protection granted
earlier via an Initial Order under the Companies’ Creditors
Arrangement Act (“CCAA”) from the Ontario Superior Court of Justice
(Commercial List) so that the CCAA protections also apply to the
Company’s’ assets and creditors located in the United States. In
addition, Judge Isgur ruled that section 525 of the bankruptcy code
would apply and he would retain “exclusive” jurisdiction for any
relief sought under such law (i.e. any act specified by section 525
purported to be taken by a “governmental unit” in the United States
against the Company in the United States must be heard by Judge
Isgur; in general, section 525 prohibits a governmental unit from
suspending or revoking a license based upon a party’s status as a
debtor in a bankruptcy case or for nonpayment of certain
debts). Finally, Judge Isgur ruled that any payments by the
Company to ERCOT will be subject to Just Energy’s rights to contest
such payments and to receive a refund or credit under applicable
law.
As announced this morning, the filings, and associated US$125
million DIP financing arranged by the Company, enable Just Energy
to continue all operations without interruption throughout the
United States and Canada and to continue making payments required
by ERCOT and satisfy other regulatory obligations. The filings have
no impact on customer bills.
Just Energy will provide further updates as developments
warrant. A copy of the CCAA Initial Order and other information
regarding the CCAA proceedings will be available at the Monitor’s
website http://cfcanada.fticonsulting.com/justenergy. Information
regarding the CCAA proceedings can also be obtained by calling the
Monitor’s hotline at 416-649-8127 or 1-844-669-6340 or by email at
justenergy@fticonsulting.com. A copy of the Chapter 15 order and
other information regarding the Chapter 15 proceedings will be
available at https://omniagentsolutions.com/justenergy.
About Just Energy Group Inc.Just Energy is a
retail energy provider specializing in electricity and natural gas
commodities and bringing energy efficient solutions and renewable
energy options to customers. Currently operating in the United
States and Canada, Just Energy serves residential and commercial
customers. Just Energy is the parent company of Amigo Energy,
Filter Group Inc., Hudson Energy, Interactive Energy Group, Tara
Energy, and terrapass. Visit https://investors.justenergy.com/ to
learn more.
FORWARD-LOOKING STATEMENTSThis press release
may contain forward-looking statements, including statements with
respect to: the Initial Order and the related DIP financing
enabling the Company to continue operations without interruption
and continuing to make payments required by ERCOT; the Company’s
ability to pursue alternatives and emerge from CCAA as a strong,
stable business; the DIP financing providing sufficient liquidity
for the Company to continue to operate the business in the normal
course under CCAA; the Company providing uninterrupted service to
its customers; the Company continuing to make payments required by
ERCOT and other regulatory obligations; and potential changes to
the financial impact of the Weather Event, whether due to ERCOT
resettlements, potential orders of the Commission with respect to
the recommendations of the IMM, the outcome of the dispute
resolution process initiated by the Company and potential
litigation challenges, or otherwise. These statements are based on
current expectations that involve several risks and uncertainties
which could cause actual results to differ from those anticipated.
These risks include, but are not limited to, risks with respect to:
the ability of the Company to continue as a going concern; the
outcome of proceedings under CCAA and similar bankruptcy
legislation in the United States; the outcome of any invoice
dispute with ERCOT; obtaining relief to delay payment of certain
ERCOT settlement invoices; the outcome of potential litigation in
connection with the Weather Event; any relief sought under section
525 of the bankruptcy code; the quantum of the financial loss to
the Company from the Weather Event and its impact on the Company’s
liquidity; the Company’s discussions with key stakeholders
regarding the Weather Event and the outcome thereof; the impact of
the evolving COVID-19 pandemic on the Company’s business,
operations and sales; reliance on suppliers; uncertainties relating
to the ultimate spread, severity and duration of COVID-19 and
related adverse effects on the economies and financial markets of
countries in which the Company operates; the ability of the Company
to successfully implement its business continuity plans with
respect to the COVID-19 pandemic; the Company’s ability to access
sufficient capital to provide liquidity to manage its cash flow
requirements; general economic, business and market conditions; the
ability of management to execute its business plan; levels of
customer natural gas and electricity consumption; extreme weather
conditions; rates of customer additions and renewals; customer
credit risk; rates of customer attrition; fluctuations in natural
gas and electricity prices; interest and exchange rates; actions
taken by governmental authorities including energy marketing
regulation; increases in taxes and changes in government
regulations and incentive programs; changes in regulatory regimes;
results of litigation and decisions by regulatory authorities;
competition; and dependence on certain suppliers. Additional
information on these and other factors that could affect Just
Energy’s operations or financial results are included in Just
Energy’s annual information form and other reports on file with
Canadian securities regulatory authorities which can be accessed
through the SEDAR website at www.sedar.com, on the U.S. Securities
and Exchange Commission’s website at www.sec.gov or through Just
Energy’s website at www.justenergygroup.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
InvestorsMichael CummingsAlpha IRPhone: (617)
982-0475JE@alpha-ir.com
MonitorFTI Consulting416-649-8127 or
1-844-669-6340 justenergy@fticonsulting.com
MediaBoyd ErmanLongview Communications and
Public AffairsPhone: 416-523-5885berman@longviewcomms.ca
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