Just Energy Group Inc (JE) stock price slide down on Wednesday, March 10, 2021, and the company lost 34.18% in share value. The negative trends continued in the extended hours as shares declined 17.31% more.
The JE stock is crashing as the company faced bankruptcy after the Texas loss. The company filed for court protection in Canada and bankruptcy in the U.S. after the company suffered unbearable losses in the recent Texas Blackouts. The recent blackout pushed millions of people into darkness and the power sector of Texas into a huge financial setback. The JE is the 2nd company filing bankruptcy following Texas’ largest and oldest electric power cooperative, Brazos Electric Power Cooperative Inc filed bankruptcy protection in Houston, quoting a disputed $1.8 billion debt to the state’s grid operator.
Just Energy recently did a recapitalization plan and changed its board members. Texas suffered from a powerful winter storm and gripped the whole region, creating a chaotic situation for power companies and consumers. The region suffered as much as $129 billion in economic losses and dozens of people died in the cold.
The company said that they would not be able to pay the full payment of $250 million in the near term despite the company was able to arrange a $125 million debtor-in-possession loan from one of its lenders.
The filing of the company is going to affect the big investors such as Pimco and Great Pacific Capital Corp which owns the majority shares in JE and controlled by Jim Pattison who is Vancouver based billionaire.
De-listings from the major Stock exchanges
The company also received a notice on March 10, 2021, from the Toronto Stock Exchange (TSX) that a meeting of the Continued Listing Committee of the TSX is scheduled to be held on March 15, 2021, to consider whether or not to delist the securities of the Company from the TSX.
The New York stock exchange (NYSE) has already commenced proceedings to delist Just Energy’s shares from the NYSE because the company filed the bankruptcy in the United States. Yet the final date has not been determined by the NYSE for the delisting.