Case Study

Retail Electrical Provider

The Fire

Texas Retail Electric Provider in business since 2007 files for Chapter 7 as a direct result of the Texas winter storm freeze. Entire workforce is terminated and operations shut down.
Customer base includes 17,000 residential and commercial customers at risk losing power.
Creditor owed $ 60m. Trustee requests court to continue as an Operating Chapter 7 with creditor financial support.

Engaged as financial advisor to reactivate company, manage operations and the sale of the books of business two-weeks after filing.
Immediately developed 13-week cash flow to assess cash burn for creditor.
Re-hired workforce, reactivated operations; including power trading desk, billing, collections.
Prepared data room and managed sale process to divest books of business within creditor negotiated timeframe of 8-weeks.
Successfully negotiated the sale of the residential Book of Business and hedges.
Successfully transferred all commercial customers to other Retail Electrical Providers and Providers of Last Resort.
Worked continuously with the PUC, ERCOT and State of Texas Attorney General’s office maintaining compliance.

Successfully reactivated operations 3-days post engagement resulting in no loss of power for any customers.
Sold and transferred both books of business and hedges successfully in full compliance with all regulatory bodies.
Met negotiated sale timeframe and budget to creditors satisfaction.