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Reorg: Judge Jones Confirms ‘Fully Consensual’ Brazos Plan, Commends Parties for Formulating ‘Much Better’ ‘Brazos 2.0’ Than Court EnvisionedNovember 14, 2022
Judge David Jones confirmed Brazos Electric Power Cooperative’s amended chapter 11 plan yesterday and approved the debtor’s disclosure statement. The plan will preserve Brazos’ cooperative and existing membership structure and eliminate approximately US$3.2 billion in liabilities. Judge Jones noted that the plan was “not even close” to the one he “had in mind” but is “so much better.” Brazos’ counsel Louis Strubeck of O’Melveny said that he “honestly never expected” to be presenting a “fully consensual plan” with “overwhelming” creditor support, further noting that the bankruptcy was a “long strange trip.” Brazos filed for bankruptcy in March 2021 after receiving around US$2 billion in wholesale power bills and ancillary costs from the Electric Reliability Council of Texas.
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