Update: In addition to experiencing economic losses during the COVID-19 pandemic, Frontera Holdings had to shut down its plants for nine days during the Texas winter storm last week. As a result, Frontera asked the court on February 23, 2021 for another $40 million in Chapter 11 financing. Jackson Walker is partnering with Kirkland & Ellis to handle Frontera’s Chapter 11 cases. For additional information, view the Law360 article “Texas Freeze Makes Frontera Ch. 11 Loan More Critical” (subscription required).
Jackson Walker is partnering with Kirkland & Ellis in representing Frontera Holdings, LLC, the owner and operator of the only U.S.-based power plant that sells all of its power to Mexico, in its Chapter 11 cases. The Company filed for Chapter 11 bankruptcy protection on February 3, 2021. In 2019, Frontera generated approximately $86.5 million in consolidated EBITDA on $196 million of revenues. The company has over $944 million in funded debt, $799 million of which will be deleveraged through the Chapter 11.
The Jackson Walker team representing the debtors includes Matthew D. Cavenaugh, Elizabeth Carol Freeman, Genevieve M. Graham, Vienna Flores Anaya, and Victoria Nicole Argeroplos. The case is filed in the U.S. Bankruptcy Court for the Southern District of Texas – Houston Division.
For additional information, view the following articles:
- “Frontera Holdings Enters into Restructuring Support Agreement for Pre-Arranged Plan of Reorganization to Reduce Debt by Approximately $800 Million and Strengthen Balance Sheet,” Frontera Holdings, LLC’s Press Release (February 3, 2021)
- “Frontera Holdings brings nearly $1B of debt to Houston bankruptcy court,” Houston Business Journal (February 4, 2021) (subscription required)
- “Frontera Holdings, in pact with lenders, equity sponsor, files Chapter 11,” S&P Global (February 4, 2021)
- “Texas Power Plant Hits Ch. 11 As COVID-19 Weakens Demand,” Law360 (February 4, 2021) (subscription may be required)
Founded in 1887, Jackson Walker continues to advance the world of business by helping companies of all sizes navigate today’s increasingly complex, interconnected legal landscape. With more than 400 attorneys across seven offices, we are the third-largest law firm in the state and have been recognized by Law360 as a “Texas Powerhouse” and an “elite law firm” that regularly provides counsel to industry-leading clients on highly complex transactions. To explore the Firm’s experience handling complex corporate Chapter 11 cases, out of court workouts, and litigation proceedings, visit the Bankruptcy, Restructuring, & Recovery practice page.
Originally published on February 8, 2021