Entrust Energy details voting results for Chapter 11 liquidation plan

By Sarah Lizee

Olympia, Wash., Dec. 16 – Entrust Energy, Inc. detailed the voting results for its Chapter 11 plan of liquidation in a tabulation summary filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

Specifically, 104 holders, or 98.11% in number, of $57,161.11, or 99.86% in amount, of convenience class unsecured claims against Entrust Energy voted to accept the plan, while two holders, or 1.89% in number, of $81.39, or 0.14% in amount, voted to reject the plan.

Meanwhile, 25 holders, or 92.59% in number, of $6.1 million, or 98.76% in amount, of general unsecured claims against Entrust Energy voted to accept the plan, while two holders, or 7.41% in number, or $76,850, or 1.24% in amount, voted to reject the plan.

Both holders of $81,712.43 of general unsecured claims against Entrust Energy East, Inc., all three holders of $28.43 of convenience class unsecured claims against Power of Texas Holdings, Inc., all three holders of $403,996.38 of general unsecured claims against Power of Texas Holdings, and the one holder of $340,435.61 of general unsecured claims against NGAE, Inc. voted to accept the plan.

The holders of secured claims asserted by Shell Energy North America (US), LP and Shell Trading Risk Management, LLC against each of the debtors voted to reject the plan.

The plan confirmation hearing is scheduled for Dec. 20.

According to the disclosure statement, the purpose of the plan is to provide for the equitable distribution of the debtors’ cash as well as any proceeds received in connection with the prosecution or settlement of the causes of action.

As all of the debtors’ other assets have already been liquidated, the only remaining assets are cash on hand, outstanding receivables and causes of action.

Holders of administrative claims, priority tax claims, priority non-tax claims and ad valorem tax claims will be paid in full.

The secured claims asserted by Shell are unliquidated and subject to dispute. To the extent Shell is entitled to any rights in connection with the claims, those rights are unimpaired under the plan.

Holders of convenience class unsecured claims will receive payment from the liquidating trust of 90% of their allowed claims.

Holders of general unsecured claims will receive a beneficial interest in the liquidating trust cash derived from liquidating trust assets less applicable expenses.

Equity interests will be canceled. Holders will receive a subordinated beneficial interest in the liquidating trust cash derived from liquidating trust assets less applicable expenses and after payment in full of all senior claims.

The secured claim of JPMorgan Chase Bank, NA will be paid in full.

Entrust Energy is a Houston-based retail power provider. The company filed bankruptcy on March 30, 2021 under Chapter 11 case number 21-31070.

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