Liberty Power Remains Open and Continues to Service Customers Across Entire Footprint
To Our Valued Customers:
At Liberty Power, we value our customers and are committed to communicating material updates as it pertains to the status of our business. Specifically, we wanted to respond to the recent publicity surrounding Liberty Power.
On Tuesday, April 21, 2021 Liberty Power Holdings, LLC filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code, principally due to the impact of the unprecedented winter storm in mid-February in Texas. Given Liberty Power’s primary product offering is a fixed rate that protects customers from sudden price spikes in the wholesale energy prices, all of Liberty Power’s fixed-rate customers were protected from the huge wholesale rate increases that occurred in Texas, but at Liberty Power’s own expense. For that reason, like many other Retail Electric Providers, the effects of the Texas winter storm negatively impacted the company.
However, as noted in an accompanying press release, Liberty Power remains open and has the support of its senior secured lender Boston Energy Trading and Marketing, LLC to continue its operations, through the use of its cash collateral on hand and through Debtor-in-possession (“DIP”) financing that is being finalized.
Filing for Chapter 11 was an unfortunate but necessary step in order to restructure debt and continue operations. As with many other companies who have filed Chapter 11, both within and outside the energy industry, we intend to emerge stronger and better. Consider General Motors, Marvel Entertainment, American Airlines, Six Flags, Texaco, and Sbarro as examples of companies that came back stronger after bankruptcy.
To reiterate, Liberty Power remains fully-staffed, operational and will continue to service customers across our entire footprint. We are grateful for the trust you have placed in us to meet your electricity supply needs while providing exceptional customer service.