Westlaw News

Brazos Electric nets cash access but may seek outside financing for bankruptcy

Brazos Electric Power Cooperative Inc, the oldest and largest electric power co-op in Texas, has secured court approval to access lender cash as it embarks on its bankruptcy process prompted by the historic winter storm that ravaged the state in February.

Chief U.S. Bankruptcy Judge David Jones in Houston signed off on the co-op’s use of the cash during a remote hearing on Wednesday afternoon. The co-op, represented by Norton Rose Fulbright, filed for bankruptcy on Monday in the face of a disputed $2.1 billion bill from Texas’ grid operator caused by the severe cold snap that left millions without power. The energy crisis could prove catastrophic for other providers as well, with credit-rating firms warning of potential downgrades to all Texas municipal power firms that use the state’s grid.

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