FERC Approves Sale of Retail Supplier

FERC approved the application of Iron Energy, LLC d/b/a Kona Energy for a transaction under which 100% of the membership interests in Iron will be sold to Vantage Commodities Financial Services, LLC

Iron is an energy services company authorized to engage in the retail sale of electricity and natural gas to residential and commercial end-users in New York, Illinois, Michigan, Ohio, Pennsylvania, and Texas

In its order, FERC stated, "Iron Energy states that, in the Proposed Transaction, the Iron Members wish to sell their equity interest in Iron Energy to Vantage, or a newly created subsidiary of Vantage, for a purchase price of $1. Iron Energy states that it and Vantage are parties to a Loan and Energy Services Agreement, pursuant to which Vantage Commodities extends financing and credit support to Iron Energy (the Loan Obligations). According to Iron Energy, the Loan Obligations are secured by, among other collateral, the limited liability company membership interests in Iron Energy, which were pledged by Iron Holdings and Circle Tree pursuant to a Pledge Agreement."

At present, Iron is owned 45% by Circle Tree Energy Partners, LLC, 45% by Iron Energy Holdings, LLC, and 10% by the Billy E. Fowler Living Trust. Iron Energy Holdings is owned and controlled by David Luppino, Chad Gallun, and Michael Elhaj. Circle Tree is owned and controlled by Jason Helms, Justin Helms and Billy Fowler