McDermott Represents the Official Committee of Unsecured Creditors of Griddy Energy, LLC in Chapter 11 Filing
International law firm McDermott Will & Emery represented the Official Committee of Unsecured Creditors (the Committee) of Griddy Energy, LLC (Griddy), a Texas-based retail energy provider whose business was devastated by the impacts of Winter Storm Uri.
The Public Utility Commission of Texas (PUCT) ordered electricity prices to be set to $9,000 per megawatt hour during the storm (87.5 hours), but Griddy was still earning its standard rate provided to customers at $9.99 per month. In addition, the Electric Reliability Council of Texas demanded Griddy meet collateral demands of over $25 million, thus resulting in the filing for chapter 11 relief.
In advocating for the Committee, McDermott faced multiple obstacles, including: substantially all of Griddy’s assets being encumbered, which would leave no recovery for unsecured creditors; balancing the interests of the tens of thousands of customers that owed money to the Debtors as a result of Winter Storm Uri (and by no fault of their own) against the interests of general unsecured creditors; and strategically negotiating with various government entities and representatives, including the Texas Attorney General, to guide the case to a successful plan confirmation. Ultimately, Griddy’s chapter 11 plan received overwhelming support and, on July 7, 2021, the Bankruptcy Court confirmed the plan.
A Plan Administrator has been appointed to investigate and pursue certain causes of action and wind up Griddy’s affairs. McDermott has been selected as lead counsel to the Plan Administrator.
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