Just Energy granted reverse vesting order and stay extension

By Sarah Lizee

Olympia, Wash., Nov. 4 – Just Energy Group Inc. said the Ontario Superior Court of Justice has granted a reverse vesting order that approves a sale transaction and extends the stay period under the Companies’ Creditors Arrangement Act to Jan. 31, according to Thursday a press release.

The company is seeking recognition of the order in the U.S. Bankruptcy Court for the Southern District of Texas.

At closing of the sale, lenders under the company’s debtor-in-possession financing facility, one of their affiliates and the holder of certain assigned secured claims, will own all of the outstanding equity of Just Energy (U.S.) Corp., which will be the new parent company of all of the Just Energy entities.

The Just Energy entities will continue their normal business and operations in the ordinary course.

All currently outstanding shares, options and other equity of Just Energy will be canceled or redeemed for no consideration and without any vote of the existing shareholders.

There will be no recovery for the Just Energy entities’ general unsecured creditors, including the holders of Just Energy’s $205.9 million term loan and the holders of Just Energy’s 7% subordinated notes due Sept. 15, 2026, unless expressly classified as “assumed liabilities” under the transaction agreement.

Liabilities that will not be retained, including the company’s term loan and the notes, will be transferred to newly formed corporations, along with excluded assets.

The company expects that there will not be any recoveries available from the newly formed residual companies.

The stay extension allows the company to continue to operate in the ordinary course of business prior to closing the transaction.

Just Energy is a Toronto-based retail energy provider specializing in electricity and natural gas commodities. The company filed Chapter 15 bankruptcy on March 9, 2021 under case number 21-30823.

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