Just Energy Group, Inc (JENGQ) closed up 123.53 percent on Monday at $0.2850 after the execution of a support agreement. Just Energy (JENGQ) stock has been trading in a day range of $0.1234 to $0.3358.
JENGQ has engaged in which agreement?
Just Energy (JENGQ) has announced the signing of a Support Agreement and a Backstop Commitment Letter with a number of its key stakeholders.
- The corporate move will result in a thorough restructuring and recapitalization transaction, which will be carried out under the Companies’ Creditors Arrangement Act (the “CCAA”) through a plan of compromise and arrangement (the “Plan”).
- Just Energy, its DIP Lenders, credit facility lenders, some secured commodities suppliers, and unsecured term loan lenders have all worked together to develop the proposed Plan.
- If accepted, the Plan will allow JENGQ to emerge from CCAA procedures and lawsuits filed under Chapter 15 of the US Bankruptcy Code (“Chapter 15”) in the US Bankruptcy Court for the Southern District of Texas (the “US Court”).
- The approach will also assist Just Energy in preserving the business’s going concern value, maintaining customer connections, retaining employment, and maintaining essential vendor and regulator ties.
- Certain creditors would get cash payments and/or equity in return for their debts, while current equityholders’ rights will be extinguished without compensation, according to the Plan.
What has JENGQ been up to?
Just Energy (JENGQ) and certain of its affiliates intend to file motions with the Ontario Superior Court of Justice on May 26, 2022, seeking an Order authorizing the holding of meetings of certain secured and unsecured creditors to consider and vote on a resolution approving the Plan, among other things. JENGQ also expects an order approving the signing of a plan support agreement and backup commitment letter by the relevant Just Energy Entities.