Trustee Proposes Deadline, Other Parameters For Customer Book Sale Process For Texas Retail Electric Provider In Bankruptcy Proceedings
April 13, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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The Chapter 7 Trustee (the 'Trustee') for the estate (the 'Estate') of Brilliant Energy, LLC (the 'Debtor') has requested that a bankruptcy court approve a proposed sale process to dispose of Brilliant's retail customer contracts, associated receivables, and associated power hedges (the 'Assets')
The Trustee has reached out to no less than twenty-three (23) prospective bidders, has executed non-disclosure agreements with fifteen (15) such bidders, and has granted fifteen (15) bidders access to a dataroom.
Under the proposed sale process:
• Any person or entity interested in purchasing the Assets must submit a Qualified so that it is received on or before April 26, 2021 at 5:00 p.m. prevailing Central Time (the 'Bid Deadline'); provided, however that the Trustee, with the consent of Brilliant's wholesale provider DTE Energy Trading, Inc. (DTEET), not to be unreasonably withheld, reserves the right to select a Successful Bidder at any time before the Bid Deadline.
• The Trustee may enter into, either before or after the Bid Deadline and with the consent of DTEET (not to be unreasonably withheld), a purchase agreement that is subject to higher and better bids (a 'Stalking Horse Purchase Agreement') with a Qualified Bidder. The Trustee is not at this time seeking approval of any expense reimbursement or break-up fee
• The Trustee may, in his discretion and in consultation with DTEET, conduct an auction (the 'Auction'). The Auction may be conducted virtually, (inside or outside the Court’s courtroom), and the Trustee shall have the right to adjourn or cancel the Auction at any time.
• Upon selection of the Successful Bidder, the Trustee shall seek entry of an order the ('Sale Order') at the Sale Hearing authorizing the sale of the Assets to such Successful Bidder (the 'Purchaser') free and clear of all liens, claims, and encumbrances.
The Trustee noted that the Debtor has Contracts with approximately 12,500 retail customers