PJM Seeks Permanent Termination of Grunwald Fund as Member

PJM has filed revisions to its operating agreement to reflect the permanent termination of Grunwald Fund, LP as a PJM Member in accordance with Sections 15.1.6(c) and 4.1(c) of the operating agreement.

PJM said that its determination to seek the permanent termination of Grunwald as a PJM Member, "is the result of three default notifications issued to Grunwald for failing to provide requisite collateral three times during the previous twelve month period."

"In particular, Grunwald was declared in collateral default on September 26, 2011, for failing to provide additional collateral when due, and again on September 28, 2011 for the same reason. Finally, Grunwald was declared in collateral default December 22, 2011, for failing to provide additional collateral as required. Grunwald was notified of PJM's determination in this regard in correspondence dated January 12, 2012, and has not, to date, elected to utilize the provisions of Section 15.1.6(d) of the Operating Agreement to appeal this determination and seek reinstatement. Importantly, Grunwald's membership rights were suspended as of December 22, 2011, in accordance with the applicable provisions of the Operating Agreement, and its outstanding positions satisfied through an ACH debit from their bank account on January 13, 2012," PJM said.