Subscribe to our newsletter to receive more information and regular updates, click here to subscribe

Home New Cases Defendants Gas Claims Worth $180M Be Disallowed, Alleges Brazos Electric Power

Defendants Gas Claims Worth $180M Be Disallowed, Alleges Brazos Electric Power

2
0

November 22, 2021, Southern District of Texas –  Debtor Brazos Electric Power Cooperative, Inc. files an omnibus objection and a complaint objecting to the amounts and classification of the proofs of claim filed by seventeen (17) defendants, including 507 Capital LLC; Cetus Capital VI, L.P., Chase Lincoln First Commercial Corporation, Citigroup Financial Products Inc.; Crossing Bridge Low Duration High Yield Fund; Destinations Global Fixed Income Opportunities Fund; Destinations Low Duration Fixed Income Fund; Koch Energy Services LLC; Leaffilter North Holdings, Inc.; NJR Energy Services Co.; OFM II, LP; OU 2 LLC; RiverPark Short Term High Yield; RiverPark Strategic Income Fund; Total Gas & Power North America, Inc.; and Two Seas Global (Master) Fund LP.

As alleged in the complaint, the Defendants’ claims arise from the sale of natural gas to the Debtor in February of 2021 during the extreme weather event known as “Winter Storm Uri.” The Debtor seeks an order under Section 502(b)(1) disallowing the Defendants’ claims for approximately $180 million through its complaint. The Debtor alleges that the Defendants’ claims are based on exorbitant and excessive prices for which the Debtor voluntarily or involuntarily received less than reasonably equivalent value in exchange. Accordingly, the Debtor argues that these obligations are allegedly avoidable under Bankruptcy Code Section 548. 

The Debtor also seeks a determination from the Court of a maximum reasonable price for gas delivered during Winter Storm Uri and a cap on the Defendants’ claims at such amount. The Debtor alleges that the Defendants charged exorbitant and unprecedented prices knowing that the Debtor faced a Hobson’s choice. The Debtor also contends that the Defendants’ claims are not entitled to priority status because the gas at issue was allegedly not purchased in the ordinary course of the Debtor’s business as required by Bankruptcy Code Section 503(b)(9).  

In re: BRAZOS ELECTRIC POWER COOPERATIVE, INC., Case No. 21-30725 (DRJ)

(2)

Jones & Associates

Course Registration Form

Enter your email and press subscribe

Enter your email and press subscribe