Texas Winter Storm Chapter 11 Filings and Other Restructurings – Week of March 8, 2021
Just as a number of large chapter 11 cases that Reorg has been following moved closer to wrapping up, fallout from Winter Storm Uri in Texas, for which the Electric Reliability Council of Texas, or ERCOT, estimates will return in losses of $55 billion, has led to at least two large in court restructurings, including Brazos Electric Power Cooperative, which sought chapter 11 protection in the Southern District of Texas on March 1, and Just Energy, which filed restructuring proceedings in Canada on March 9. The storm led to power generation facilities being knocked off line, lack of natural gas availability, and numerous other knock-on effects. Other situations that Reorg is following related to the storm include Rayburn Country Electric Cooperative, National Rural Utilities Cooperative and Sandy Creek. The Texas winter storm chapter 11 filings will continue to be monitored by our team.
The large, previously contentious cases noted above include offshore driller Valaris, which had its plan confirmed on March 3, and auto parts supplier Garrett Motion, which successfully mediated a revised plan with various equity groups. Hertz and Intelsat also filed plans of reorganization, but those cases appear far from over as creditor groups either work to prepare competing proposals or lodge objections to derail the debtors’ processes.