Overview
International law firm McDermott Will & Emery represented the Official Committee of Unsecured Creditors (the Committee) of Griddy Energy, LLC (Griddy), a Texas-based retail energy provider whose business was devastated by the impacts of Winter Storm Uri.
The Public Utility Commission of Texas (PUCT) ordered electricity prices to be set to $9,000 per megawatt hour during the storm (87.5 hours), but Griddy was still earning its standard rate provided to customers at $9.99 per month. In addition, the Electric Reliability Council of Texas demanded Griddy meet collateral demands of over $25 million, thus resulting in the filing for chapter 11 relief.
In advocating for the Committee, McDermott faced multiple obstacles, including: substantially all of Griddy’s assets being encumbered, which would leave no recovery for unsecured creditors; balancing the interests of the tens of thousands of customers that owed money to the Debtors as a result of Winter Storm Uri (and by no fault of their own) against the interests of general unsecured creditors; and strategically negotiating with various government entities and representatives, including the Texas Attorney General, to guide the case to a successful plan confirmation. Ultimately, Griddy’s chapter 11 plan received overwhelming support and, on July 7, 2021, the Bankruptcy Court confirmed the plan.
A Plan Administrator has been appointed to investigate and pursue certain causes of action and wind up Griddy’s affairs. McDermott has been selected as lead counsel to the Plan Administrator.
The McDermott team was led by Chuck Gibbs and Darren Azman, and included Robert Lamkin, Monica Asher, Mark Mihanovic, Evan Belosa, Sarah Bro, Jane Byrne, Blaine Adams, Natalie Rowles, Darren Yang, and Cathy Greer.
About McDermott
McDermott Will & Emery partners with leaders around the world to fuel missions, knock down barriers and shape markets. Our team works seamlessly across practices and industries to deliver highly effective—and often unexpected—solutions that propel success. More than 1,200 lawyers strong, we bring our personal passion and legal prowess to bear in every matter for our clients and the people they serve.
