Bankrupt Texas Retail Provider Owes $27 Million To Wholesale/Credit Provider

During a hearing on first day motions in the bankruptcy proceeding of Pogo Energy, LLC, parties disclosed that Pogo owes $27 million to Luminant, Pogo's wholesale supplier and credit provider

A representative from Luminant told the court that Pogo's Chapter 11 filing came as a, "total surprise".

While Pogo has been in default under its agreement with Luminant, a representative from Luminant told the court that Luminant had not begun exercising any remedies against Pogo, and that it had been working with Pogo to reach an agreement on a consensual work-out plan that would have avoided bankruptcy filing

A representative from Luminant noted that it was also working with, "several other similarly situated retail energy providers" in various attempts to reach agreements on consensual work-out plans that would avoid bankruptcy filings for such other REPs

Representatives from Pogo and Luminant told the court that they would continue to attempt to reach an agreement

Pogo emphasized to the court the need to avoid a POLR drop in order to maintain the value of its customer base, its largest asset