Catalyst Energy Files Bankruptcy

Catalyst Energy Files Bankruptcy

www.ajc.com

Natural gas marketer Catalyst Energy filed for Chapter 11 bankruptcy protection Wednesday after its credit evaporated overnight.

(visit the link for the full news article)

Georgia utility regulators, meanwhile, will begin deciding on Friday if Catalyst can continue to sell gas in Georgia.

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.

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

De Aguero said his company’s bankruptcy stems directly from the meltdown on Wall Street.

www.ajc.com
(visit the link for the full news article)

Why can't an energy company get credit? Especially with winter approaching. Maybe I am scrutinizing this too much since it will impact the lives of a lot of everyday people.

NOT GOOD!

Will these people get electricity this winter?

It's a gun pointed at our head. "Bail us out or people could die!"

Simple, clear, and I dare say effective.

Interesting considering their is no shortage of fuel.

This is about the ALMIGHTY CREDIT - more powerful than money, nations, and the basic necessity that has become hostage to it.

They know we won't allow people to freeze and suffer, so this little debacle joins the list of the tools of fear.

Remember - the fuel exists - it is available - it's the CREDIT that failed.

Central Banking System mechanics at it's finest.

reply to post by Maxmars

Oh you got that right ! The gloves sure off for sure,they aren't even trying to hide now

It's a gun pointed at our head. "Bail us out or people could die!"

Very true. I gave you a star. My reply to button is broken.

Did anyone think to question why this company was the one that got its credit pulled? They do back other companies that are still ok. I think mismanegement is to blame.

It is truly sad that they are going to let people be cold and not have basic human needs because of a fictitious thing such as credit.
I think this is going to get a lot worse as time goes on.
Think about something for a min, Think where the military are at the moment, and think about where the "shortage" of fuel is and think about how much the military uses.
Oh I think I'm about to sneeze..........*ah-undermined-choo*

I still can't get over the timing of this and the article about California possibly needing a 7 billion dollar loan, both coming right before the bill faces the vote today. Talk about trying to sway public opinion with fear.

First of all, it's Georgia...nobody would freeze this winter without gas. Secondly, it's not like Catalyst owns the transmission and distribution system. People will get their gas. It will still come by way of Atlanta Gas Light's system. The customers will just have another company's name at the top of their bill and they will probably have to set up their auto bill payments with the new company. Another tidbit...Catalyst's credit and long term gas contracts were supplied by Constellation Energy. Constellation pulled the line and Catalyst falls on their face. maybe borrowers should start researching their lenders instead of the other way around.