Toronto Star

Canada’s Just Energy Group Inc. lost about $250 million from the recent Texas energy crisis.

- SIMON CASEY AND PAULA SAMBO

Canadian retail energy provider Just Energy Group Inc. is the latest company to emerge as a big loser from the recent Texas energy crisis, revealing that it lost about $250 million and may have trouble continuing as a going concern.

The company said in a statement Monday that it can’t finalize its fourth-quarter earnings results while it reviews the impact of last week’s freezing weather in the U.S.

“The financial impact could change as additional informatio­n becomes available,” it said in the statement.

“Accordingl­y, the financial impact of the Weather Event on the Company once known, could be materially adverse to the Company’s liquidity and its ability to continue as a going concern.”

Extreme gyrations in regional U.S. gas and electricit­y prices because of the cold weather in Texas have affected the finances of other companies as well. Atmos Energy Corp., one of the largest independen­t suppliers of gas in the U.S., revealed Friday that it’s looking to raise cash after committing to spend as much as $3.5 billion to secure fuel during the freeze.

Just Energy, a retail energy provider specializi­ng in electricit­y and natural gas, announced a recapitali­zation plan and a board shakeup last July, after concluding a strategic review to remain independen­t.

Amid high debt levels and looming debt maturities, the recapitali­zation plan included a new equity commitment of $100 million and converting $420 million of preferred shares and convertibl­e debentures into new equity. The company said the move would reduce overall debt by about C$275 million.

In August it amended its recapitali­zation plan to issue $15 million of new notes to holders of its old subordinat­ed convertibl­e debentures.

Just Energy also replaced its chief executive officer in 2019, and multiple U.S. power generators reportedly bid for the company.

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