Griddy Energy LLC

Case No. 21-30923Texas SouthernPetition date Mar 15, 2021

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Griddy Energy LLC

Case No. 21-30923Texas SouthernPetition date Mar 15, 2021

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Case summary

Griddy Energy is in a post-operating wind-down and litigation-driven chapter 11 posture: the business entered bankruptcy after Winter Storm Uri and the forced loss of its Texas retail electric customers, and the remaining value path appears centered on reconciling creditor claims, addressing Macquarie’s secured position, and pursuing estate causes of action rather than reorganizing as a going concern.

The debtor filed chapter 11 on March 15, 2021, after the February 2021 Texas power-market dislocation left its wholesale-index retail model exposed to sustained $9,000/MWh pricing and escalating ERCOT collateral demands. Griddy had operated as a Texas retail electric provider offering customers wholesale electricity access for a fixed monthly membership fee, but during the storm it urged customers to switch providers, lost nearly 10,000 customers before February 15, and then saw ERCOT transition the remaining customer base to a Provider of Last Resort by February 26. By the petition date, the company had no ongoing customer platform, reduced headcount, $29.1 million of accounts receivable, and $1.45 million outstanding under a Macquarie borrowing-base facility secured by substantially all assets, according to the Fallquist first-day declarationDkt. 21.

The initial restructuring thesis was therefore an orderly liquidation framework: preserve cash management and employee functions, manage notice to a large former-customer population, compromise Macquarie’s claims, distribute residual cash to unsecured creditors, release former customers where appropriate, and evaluate claims against ERCOT. That path later shifted into estate litigation, including avoidance and recovery actions against TXU Retail Energy and ERCOT, as reflected in the TXU adversary complaintDkt. 1 and the ERCOT adversary complaintDkt. 1. No near-term hearing schedule or confirmed plan milestone is included in the provided context, so the high-signal current read is a mature wind-down case whose value proposition depends less on operations and more on claims resolution and adversary recoveries.

AI-generated summary. Check the cited filings before relying on it.Updated May 29, 1:39 AM ET

Latest developments

HearingsMarch 15, 2021

Griddy files Chapter 11 after ERCOT customer transition

Griddy Energy LLC opened Chapter 11 in the Southern District of Texas on March 15, 2021, reporting $10 million-$50 million of both assets and liabilities, 1,000-5,000 creditors, and funds available for unsecured creditors; no plan accompanied the petition source filing. CEO Michael Fallquist said the Texas retail electricity provider had about 29,000 customers and 30 employees before Winter Storm Uri; ERCOT’s $9,000/MWh emergency pricing, escalating collateral calls up to $25.3 million, and Feb. 26 forced transition of all remaining customers to providers of last resort left Griddy with zero customers and 16 employees source filing.

The initial case posture was a controlled liquidation, not an operating reorganization. Griddy entered with a Macquarie facility capped at $15.0 million, $1.45 million outstanding to Macquarie, and $29.1 million of customer receivables; the proposed path was to compromise Macquarie’s debt, offer former-customer releases, distribute residual cash to unsecured creditors, and preserve litigation claims including against ERCOT source filing. The liquidation plan was confirmed July 7, 2021, became effective July 23, 2021, and set Aug. 23 administrative/rejection-claim deadlines plus a Sept. 5 customer-release opt-out deadline source filing.

Key professionals

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Financial Advisor

Province, LLC

Bankruptcy Counsel

McDermott Will & Schulte LLP