Just Energy Seeks Bankruptcy After Texas Loss
Bloomberg 3/9/2021 Paula Sambo
(Bloomberg) Just Energy Group Inc. filed for court protection in Canada and bankruptcy in the U.S. after suffering crushing losses in the Texas blackouts that plunged millions of people into darkness and the region’s power sector into chaos.
The Canadian retail energy seller, which specializes in electricity and natural gas, is at least the second company to seek court protection in the wake of the crisis. It recently emerged from a recapitalization plan and a board shakeup. Pacific Investment Management Co. is the largest shareholder with a 28.9% stake, according to data compiled by Bloomberg.
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Just Energy Group Inc. filed for court protection in Canada and will seek bankruptcy in the U.S. after suffering crushing losses in the Texas blackouts that left millions of people in the dark and plunged the region’s power sector into chaos.
The Canadian retail energy seller, which specializes in electricity and natural gas, is at least the second company to seek court protection in the wake of the crisis. It recently emerged from a recapitalization plan and a board shakeup. Pacific Investment Management Co. is the largest shareholder with a 28.9 per cent stake, according to data compiled by Bloomberg.
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For investors and companies that spent years ignoring climate risks, the storm that buried much of Texas in frost and snow earlier this month is sending a wake-up call that’s reverberating even in Canada.
In recent years, at least three Canadian utilities had spied opportunities for predictable cash flows in the loosely regulated Texas electricity market, but they failed to foresee the climate-related risk.
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One of those companies, Mississauga-based Just Energy Group, a retail utility providing power from natural gas and renewable energy sources, told investors this week that it is now teetering on insolvency after incurring an estimated $315 million in losses as a result of the Texas storm. Analysts who pegged the company’s liquidity at $138 million, said