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WSJ Pro Bankruptcy: Texas Co-op Brazos Keeps Control of Bankruptcy Fate, Fending Off Owners

12월 15, 2021

A bankruptcy judge gave Brazos Electric Power Cooperative Inc. more time to formulate its own restructuring plan, ruling against two member-owner cooperatives that have criticized its focus on raising debt to cover the steep costs of a freak winter storm in Texas in February. Tuesday’s ruling by Judge David Jones of the US Bankruptcy Court in Houston extends the deadline for Brazos to file a restructuring plan through next March and to solicit votes through May without the risk of a competing plan from creditors… Brazos racked up roughly US$1.9 billion in charges from the state’s grid operator, the Electricity Reliability Council of Texas, during the winter storm and another roughly US$180 million buying natural gas. Brazos has challenged the invoices from Ercot in bankruptcy court, a continuing dispute at the heart of the bankruptcy case, Brazos lawyer Louis Strubeck said during Tuesday’s court hearing. “The Ercot claim is the primary gatekeeping issue here,” Mr. Strubeck said.

WSJ Pro Bankruptcy subscribers can read the full article here.