Just Energy Group Provides Update on CCAA Process and Listing of its Shares on the TSX-V
May 26 2021 - 9:24AM
Just Energy Group Inc. (“Just Energy” or the “Company”) (OTC:
JENGQ), a retail energy provider specializing in electricity and
natural gas commodities and bringing energy efficient solutions and
renewable energy options to customers, announced today that the
Ontario Superior Court of Justice (Commercial List) (the
“
Court”) has, among other things, extended the
stay period under the Companies’ Creditors Arrangement
Act (Canada) (“
CCAA”) to September 30,
2021.
The Company is using the extended stay period to focus on
growing the business and to continue engaging with key
stakeholders, with a view of implementing a value maximizing
emergence plan. In addition, the Company continues to explore and
develop options regarding invoices received from the Energy
Reliability Council of Texas (“ERCOT”) related to
the Texas extreme weather event in February (the “Weather
Event”), including potential legislation, the dispute
resolution process initiated by the Company with ERCOT and
potential litigation challenges. The total financial impact of the
Weather Event to the Company may change due to the enactment of
legislation, the outcome of the dispute resolution process and
successful litigation challenges.
The Company has also been advised by the lenders under the US
$125 million debtor-in-possession loan (the “DIP
Lenders”) comprised of OC II VS XIV LP (“OC
II”), a Delaware limited partnership, and certain other
funds under common management with OC II (collectively, the
“Funds”), that OC II has filed an amended early
warning report pursuant to Canadian securities laws to provide
updated disclosure relating to the Funds’ plans with respect to
their current investment in Just Energy and potential participation
in the Company’s restructuring, which is available at www.sedar.com
under Just Energy’s issuer profile.
In addition, Just Energy previously announced plans to apply to
the TSX Venture Exchange (the "TSX-V") to
transition the trading of its common shares from the Toronto Stock
Exchange to the TSX-V. The Company has received conditional
approval to list its common shares on the TSX-V and trading is
expected to commence in early June.
“Just Energy remains focused on its commitment to our customers
and driving innovation across our business, while continuing to
advance its restructuring plans,” said Scott Gahn, Just Energy’s
President and Chief Executive Officer. Mr. Gahn added, “We believe
there are considerable opportunities to grow our business in our
key markets."
Due to the ongoing CCAA process, the Company also announced that
the Court approved the postponement of its annual meeting of
shareholders until further notice.
Just Energy will provide additional updates as developments
warrant. Further information regarding the CCAA proceedings is
available at the Monitor’s website at
http://cfcanada.fticonsulting.com/justenergy. Information regarding
the CCAA proceedings can also be obtained by calling the Monitor’s
hotline at 416-649-8127 or 1-844-669-6340 or by email
at justenergy@fticonsulting.com.
About Just Energy Group Inc.
Just Energy is a retail energy provider specializing in
electricity and natural gas commodities and bringing energy
efficient solutions and renewable energy options to customers.
Currently operating in the United States and Canada, Just Energy
serves residential and commercial customers. Just Energy is the
parent company of Amigo Energy, Filter Group Inc., Hudson Energy,
Interactive Energy Group, Tara Energy, and terrapass. Visit
https://investors.justenergy.com/ to learn more.
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements,
including statements with respect to the CCAA and U.S. chapter 15
proceedings; the ability of the Company to grow its business in key
markets and to implement a value maximizing emergence plan; the
Company’s options regarding invoices received from ERCOT and the
potential financial impact thereof; the listing of the common
shares on the TSX-V and the timing thereof; the availability of
potential restructuring alternatives; and whether there are any
government or regulatory actions associated with the Weather Event.
These statements are based on current expectations that involve
several risks and uncertainties which could cause actual results to
differ from those anticipated. These risks include, but are not
limited to, risks with respect to: the ability of the Company to
continue as a going concern; the outcome of proceedings under CCAA
and similar legislation in the United States; the outcome of any
legislative or regulatory actions; the outcome of any invoice
dispute with ERCOT; the outcome of potential litigation in
connection with the Weather Event; the quantum of the financial
loss to the Company from the Weather Event and its impact on the
Company’s liquidity; the Company’s discussions with key
stakeholders regarding the Weather Event and the outcome thereof;
the impact of the evolving COVID-19 pandemic on the Company’s
business, operations and sales; reliance on suppliers;
uncertainties relating to the ultimate spread, severity and
duration of COVID-19 and related adverse effects on the economies
and financial markets of countries in which the Company operates;
the ability of the Company to successfully implement its business
continuity plans with respect to the COVID-19 pandemic; the
Company’s ability to access sufficient capital to provide liquidity
to manage its cash flow requirements; general economic, business
and market conditions; the ability of management to execute its
business plan; levels of customer natural gas and electricity
consumption; extreme weather conditions; rates of customer
additions and renewals; customer credit risk; rates of customer
attrition; fluctuations in natural gas and electricity prices;
interest and exchange rates; actions taken by governmental
authorities including energy marketing regulation; increases in
taxes and changes in government regulations and incentive programs;
changes in regulatory regimes; results of litigation and decisions
by regulatory authorities; competition; and dependence on certain
suppliers. Additional information on these and other factors that
could affect Just Energy’s operations or financial results are
included in Just Energy’s annual information form and other reports
on file with Canadian securities regulatory authorities which can
be accessed through the SEDAR website at www.sedar.com on
the U.S. Securities and Exchange Commission’s website
at www.sec.gov or through Just Energy’s website
at www.justenergygroup.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Investors
Michael CummingsAlpha IRPhone: (617) 982-0475JE@alpha-ir.com
MonitorFTI Consulting Inc.Phone: 416-649-8127
or 1-844-669-6340justenergy@fticonsulting.com
MediaBoyd ErmanLongview Communications and
Public AffairsPhone: 416-523-5885berman@longviewcomms.ca
Source: Just Energy Group
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