Bankruptcy

Catalyst Natural Gas Files Chapter 11 Bankruptcy Petition In Northern District

By Scott Riddle

Gas Marketer Catalyst Natural Gas, and related companies, filed Chapter 11 petitions in the Northern District of Georgia on October 1, 2008.  In re Catalyst Natural Gas, LLC, Ch. 11 Case No. 08-79390,  In re Catalyst Energy Group, Inc., Ch. 11 Case No. 08-79392, and In re Catalyst Supply Services, Inc., Ch. 11 Case No. 08-79394.  

See the Atlanta Journal article here. 

State law requires marketers to have enough credit to pay for the gas they order. Catalyst lost both that required line of credit and its contracted fuel supply this week, as the Wall Street crisis rippled into the energy industry. The state Public Service Commission can suspend Catalyst’s license and dole out its customers to other marketers. It’s unclear whether the authority of bankruptcy court will supersede the regulators. The company said it has 30,000 customers in Georgia and liabilities of $20 million.  Catalyst CEO Fernando de Aguero and Steve Moore, its vice president for regulatory affairs, both said the company would work with the PSC to guarantee its customers get service.

“We’re working with the PSC and Atlanta Gas Light to make sure their gas service doesn’t get interrupted,” Moore said.

Full post as published by Georgia Bankruptcy Blog on October 04, 2008 (boomark / email).