FERC Directs Retail Supplier To Provide Update On Ownership Dispute

FERC directed BluCo Energy LLC to provide the Commission with a status and scheduling concerning litigation which is contesting the ownership of the retail supplier, in light of dueling petitions before FERC for transactions to acquire the supplier.

As previously reported, in February BluCo filed an application with FERC requesting prospective authorization of a November 2014 share exchange agreement transaction pursuant to which GoCOM Corporation purportedly acquired 100 percent of the membership interests in BluCo.

However, in March, Vantage Commodities Financial Services II, LLC filed an application with FERC requesting prospective authorization of a transaction under which Vantage Commodities Financial Services II purchased all of the limited liability company membership interests in Bluco after, as the supplier's credit provider, foreclosing on the supplier and conducting an auction for the company. Vantage Commodities Financial Services II alleged that the purported sale to GoCOM was not valid as it was prohibited under its credit agreement with BluCo

GoCOM Corporation responded that ownership of Bluco is now an outstanding dispute before the New York Supreme Court.

In light of the petitions, FERC requested that Bluco, "update the Commission on the status and schedule of the Ownership Dispute Litigation, including when you expect the litigation to be completed, and any other relevant information regarding this litigation."

Noting the deadline by which FERC must grant or deny an acquisition application, FERC directed Bluco to, "update the Commission on whether you plan to supplement or withdraw the February Application, the March Application, or both as a result of the Ownership Dispute Litigation."