It looks like the Texas freeze is going to wipe some businesses out. From Wolf Richter at wolfstreet.com:
Now hoping for “corrective action” and “credit intervention” by the State of Texas.
The financial repercussions of the winter-storm electricity crisis in Texas have entered the confession phase.
Just Energy Group, the Canada-based retailer of electricity and natural gas that is heavily involved in Texas, announced this morning in an SEC filing that it might have lost $250 million over the few days during the “Weather Event” in Texas, and that “the financial impact could change as additional information becomes available,” and that “once known,” the financial impact “could be materially adverse to the Company’s liquidity and its ability to continue as a going concern.”
This “going concern” warning is a standardized accounting term for the acknowledged possibility that the company might not be able to meet its obligations and might not be able to stay afloat.
In terms of its “liquidity”: The $250 million loss over the past few days contrasts with just $78 million in cash on hand that the company reported in its most recent earnings report for the quarter ended September 30. It also had $780 million in long-term debt, a third of which comes due this year. And its balance sheet has been hollowed out to where its stockholder equity is negative (-$500 million).