Media Coverage
Source: Bloomberg
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
08.09.22
The U.S. Court of Appeals for the Fifth Circuit has ruled for the second time in five months that bankrupt energy companies can terminate regulated contracts without consent from the Federal Energy Regulatory Commission. The rulings echo one made by the Sixth Circuit three years ago. To date, these are the only circuit courts to address the jurisdictional authority of bankruptcy judges over matters that intersect with FERC’s administrative duties.
Pillsbury Insolvency & Restructuring partner Hugh McDonald told Bloomberg that stability and “consistency across the board” matter most for those financing for energy deals. Likewise, a firm understanding of contract termination rules is crucial for energy market deal.
“Given where America is going with development of renewable resources, it’s important that people investing in these renewable resources have some confidence they’re going to get a return,” he said.