Bankrupt Texas Retail Provider Reaches Agreement In Principle With Largest Creditor & Wholesale Supplier

Pogo Energy, LLC ('Debtor') requested that a federal bankruptcy court extend the periods of time under sections 1121(c)(2) and (3) of the Bankruptcy Code within which only the Debtor may file a plan and solicit acceptances of the plan (the 'Exclusivity Periods') by 60 days, stating that Debtor and Luminant, its largest creditor and wholesale provider, have reached an agreement in principle

Pogo did not in its motion disclose specific details concerning the agreement in principle

Pogo did state that, "The Debtor has made significant progress negotiating with its largest and most significant creditor, Luminant, which has resulted in an agreement in principle to resolve the parties’ dispute and Luminant’s claim. The Debtor has also made progress in negotiating agreements with other creditors such as the TDUs (Transmission and Delivery Utilities) to provide them with adequate assurance of performance."

"Throughout this case it has been clear that the Debtor must reach an agreement with Luminant Energy Company, LLC ('Luminant'), its largest creditor and its secured lender, if it is going to establish a path to emerge from chapter 11. It now appears that the Debtor and Luminant have been successful in their efforts to resolve their dispute and have reached an agreement in principle; however, the parties will require time to reduce the particularized terms of their agreement to a writing that will form the basis of plan of reorganization, and the Debtor’s Exclusivity Period to file a plan terminates on October 29, 2021. As such, the Debtor seeks extension of the periods of time under sections 1121(c)(2) and (3) of the Bankruptcy Code within which only the Debtor may file a plan and solicit acceptances of the plan by 60 days to provide the Debtor with adequate time to finalize its settlement with Luminant and then propose a plan that incorporates the settlement," Pogo said

"Presently, the Debtor’s exclusive right to file a plan terminates on October 29, 2021, which is 120 days from the Petition Date, pursuant to section 1121(b) of the Bankruptcy Code. As permitted under section 1121(d), the Debtor requests entry of an order extending the Exclusivity Periods under sections 1121(c)(2) and (3) within which only the Debtor may file a plan and solicit a plan by an additional 60 days as follows: through and including December 28, 2021 to file a plan, and through and including February 28, 20221 to solicit acceptances thereof," Pogo said