- Just Energy Group (JE.H) has signed a stalking horse transaction agreement, and a support agreement (the SISP Support Agreement)
- The agreements relate to a proposed sale, and investment solicitation process (SISP) meant to facilitate its exit from ongoing insolvency proceedings as a going concern
- Just Energy also filed a motion before the Ontario Superior Court of Justice
- Just Energy is a retail energy provider specializing in electricity and natural gas commodities
- Just Energy Group Inc. (JE.H) opened trading at $0.33 per share
Just Energy Group (JE.H) has signed a stalking horse transaction agreement and a support agreement (the SISP Support Agreement).
The agreements are in connection with a proposed sale and investment solicitation process (SISP) that is meant to facilitate its exit from ongoing insolvency proceedings as a going concern.
When the SISP Support Agreement was executed, Just Energy and the other parties terminated the plan support agreement and backstop commitment letter in connection with a proposed plan of compromise and arrangement.
Furthermore, Just Energy and certain of its affiliates (Just Energy Entities) filed a motion in its proceedings under the Companies’ Creditors Arrangement Act before the Ontario Superior Court of Justice on August 4, 2022 for an order.
Just Energy has entered into the Stalking Horse Transaction Agreement under the company’s debtor-in-possession financing facility, one of their affiliates and the holder of certain assigned secured claims.
Key terms of the Stalking Horse Transaction include that the purchase price payable regarding the Stalking Horse Transaction is (i) cash in the amount of US$184,857,692.31, plus up to an additional $10 million solely in the event that additional amounts are required to make applicable payments concerning the Stalking Horse Transaction Agreement.
In connection with the Stalking Horse Transaction Agreement, the Just Energy Entities have entered into the SISP Support Agreement with: (a) the Stalking Horse Purchaser, (b) the company’s credit facility lenders, and (c) the company’s largest commodity supplier.
In the foregoing termination scenario or in the event of court approval of an alternative transaction, the Just Energy Entities would be required to pay a US$14.66 million termination fee to the Stalking Horse Purchaser on closing of an alternative transaction, subject to the granting of the SISP Order.
Just Energy is a retail energy provider specializing in electricity and natural gas commodities.
Just Energy Group Inc. (JE .H) opened trading at $0.33 per share.
