Bankrupt Retail Supplier Seeks Court Authorization To Pay Past & Ongoing Broker Commissions
Warns Of Customer Switches, Destruction Of Value To Sale Process If Commissions Not Paid
April 22, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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The bankruptcy Trustee of Brilliant Energy LLC (the "Debtor") sought a court order authorizing the Trustee to pay commissions owed to brokers under contracts which existed prior to Brilliant's bankruptcy petition
As of the bankruptcy Petition Date, the Trustee estimates that there was approximately $137,500.00 owed to approximately 195 brokers for commissions.
Additionally, the Debtor owes broker commissions due post-petition on account of pre-petition customer contracts.
The Trustee said that total March ($275,000.00) and April ($275,000.00) 2021 broker commission payment amounts are included in the latest budget approved by DTE Energy Trading, Inc., which is Brilliant's trustee-in-possession financing provider
"The brokers play an important role in maintaining the value of the estate’s operating assets that will be sold quickly pursuant to the Court approve sale process. The Trustee is concerned that if the brokers are not paid their commissions incurred during the March 1 – 15, 2021 time frame, as well as other broker commissions due post-petition on account of pre-petition customer contracts, then there is a greater chance that customers will switch from the Debtor to a different retail electricity provider, thereby damaging the estate," the Trustee said
"[T]he Trustee understands that the relief requested in this Motion is supported by DTE Energy Trading, Inc," the Trustee averred
"[T]he anticipated substantial benefit conferred on the estate by the brokers warrants the payment of the pre-petition broker commissions. Thus, the Trustee requests the authority to pay the pre-petition broker commissions," the Trustee averred
"The Trustee requests emergency consideration of this Motion. The Trustee believes payment of the pre-petition broker commissions is important to the Trustee’s efforts to maximize value of the Debtor’s operating assets at a sale. Furthermore, the failure to receive the requested relief for 21 days would materially disrupt the Trustee’s efforts to preserve asset value for the upcoming sale," the Trustee said.
The Trustee sought an order stating, "The Trustee is authorized to (a) pay to the Debtor’s brokers, accrued and unpaid commissions for the period March 1 – 15, 2021, in the approximate amount of $137,500.00, as described in the Motion, and (b) continue paying broker commissions due post-petition on account of pre-petition customer contracts."