Just Energy Announces Receipt of Interim Order for Recapitalization and Board Renewal

Just Energy Group Inc. (Just Energy or the Company) today announced it has obtained the interim order from the Ontario Superior Court of Justice in connection with the plan of arrangement (the 'Plan of Arrangement') announced on July 8, 2020.

The order, among other things, grants a limited stay of proceedings and establishes the record date for voting of securityholders with respect to the Plan of Arrangement as July 23, 2020.

Just Energy said, "The Plan of Arrangement provides a comprehensive plan to strengthen and de-risk the business, positioning the Company for sustainable growth as an independent industry leader."

See details and background on the plan here

Just Energy said the plan includes:

• Conversion of approximately C$420 million subordinated convertible debentures and preferred shares into new equity

• New cash equity investment commitment of C$100 million

• Extension of C$335 million secured credit facilities by three years to December 2023

• Extension of unsecured debt of US$205.9 million to March 2024 with interest to be paid-in-kind

• Initial reduction of annual cash interest expense by approximately C$45 million

• Reconstitution of the Board of Directors with five new directors (announced on July 16, 2020) -- See the Company's proposed list of Directors here

• "Business as usual for employees, customers and suppliers enhanced by the relationship with a financially stronger Just Energy – they will not be affected by the Recapitalization," the Company said

"The implementation of the Recapitalization is expected in September 2020, pending court and securityholder approvals required under the Canada Business Corporations Act (CBCA), as well as applicable approvals by the Toronto Stock Exchange and New York Stock Exchange," the Company said

"The Company also intends to file an information circular describing the transaction in detail next week, and expects to seek approval for the proposed Plan of Arrangement at a Special Meeting of Shareholders and meetings of applicable creditor classes (collectively, the 'Meetings') scheduled for August 25, 2020," Just Energy said

"Provided that the Plan of Arrangement is passed by the creditor classes and shareholders at the respective meetings, the Company’s Annual General Meeting will immediately follow the Meetings on August 25, 2020," the Company said