OTCPK:JENGQ - Post by User
Comment by
Capharnaumon Mar 09, 2021 12:47pm
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Post# 32753417
RE:RE:RE:Texas won't budge?
RE:RE:RE:Texas won't budge?GaillardDeshaie wrote: Quite a bad news from a huge weather event in Texas. I have a question, if they are able to borrow $125 millions US$ to pay the bill to ERCOT and put the company on creditors protection, why they don't let go the substitual company dealing in Texas in bankruptcy? My guess is if they have a legal company only operating in Texas, they should let it go!! And save the balance of the group.
In order to enter into agreements with ERCOT, they needed to provide some form of guarantee that they could pay off their obligations. This usually means credit letters or deposits. It looks like they put the whole corporation as collateral. In order to meet their obligations, they had to get a loan in the form of debt in possession (which means the credit provider will get paid first and if they don't get paid completely, they will own 100% of Just Energy).
In all likeliness, all shareholders will get wiped out and the new debtor will walk away with the business.