Just Energy Obtains Extension Of Stay Period And Claims Procedure Order Under Creditors Act

Just Energy Group Inc. ("Just Energy" or the "Company") announced today that the Ontario Superior Court of Justice (Commercial List) (the "Court") has, among other things, extended the stay period under the Companies’ Creditors Arrangement Act (Canada) ("CCAA") to December 17, 2021 (the "Stay Extension").

The Company also announced that it has obtained an order establishing a claims process (the "Claims Process") to identify and determine claims against the Company and its subsidiaries that are subject to the ongoing CCAA proceedings.

"The stay extension allows the Company to continue to operate in the ordinary course of business, while pursuing a restructuring plan with its stakeholders," Just Energy said

"Just Energy remains focused on growing its business and serving its large customer base across North America," said Scott Gahn, Just Energy’s President and Chief Executive Officer. Mr. Gahn added, "We also look forward to continuing to work with our stakeholders on developing a successful restructuring plan."

In a court filing, Just Energy said, "The Just Energy Entities believe that the extension of the Stay Period is necessary and appropriate in the circumstances to provide the Just Energy Entities with the necessary breathing room to continue to focus on their stabilization and going concern operations as part of these proceedings, finalize a proposed restructuring plan, and continue their ongoing engagement with key stakeholders regarding restructuring options and terms. Further, the extension of the Stay Period is necessary to allow the Claims Process to be implemented in accordance with the proposed Claims Procedure Order."

In a court filing, Just Energy said, "The Just Energy Entities distributed a business plan to the DIP Lenders, Shell, BP, and the Credit Facility Lenders on May 18, 2021. Since that date, the Just Energy Entities, with the assistance of their legal and financial advisors, have been working diligently to advance their restructuring in accordance with the requirements of the DIP Facility Commitment Letter."

"To this end, the Just Energy Entities have engaged extensively with the Monitor and the DIP Lenders regarding the terms and structure of a restructuring plan. The purpose of this stakeholder engagement is to facilitate the Just Energy Entities’ emergence from the current CCAA and Chapter 15 proceedings in a manner which, among other things, preserves going concern value of the business, maintains relations with key Commodity Suppliers to ensure uninterrupted supply for customers, preserves ongoing employment, and maintains critical relationships with regulators and other key stakeholders," Just Energy said in a court filing

"Further, the Just Energy Entities have been working with their Financial Advisor to develop a term sheet (the 'Recapitalization Term Sheet') setting out a potential framework for the recapitalization of the Just Energy Entities and their respective businesses to ensure their long-term viability upon emergence from these CCAA and Chapter 15 proceedings. Discussions between the Just Energy Entities and the DIP Lenders regarding the Recapitalization Term Sheet remain ongoing. The Just Energy Entities are in the process of broadening the scope of such discussions to include other key stakeholders in due course," Just Energy said in a court filing

Just Energy said in a court filing that it has negotiated extensions to various milestone deadlines under the restructuring process, including a new October 7, 2021 deadline for delivery to the DIP Lenders of a term sheet for a recapitalization transaction reasonably acceptable to the DIP Lenders