Entrust Energy's Bankruptcy Plan Approved After Deal With ERCOT

Entrust Energy Inc. won preliminary approval for its Chapter 11 plan to create a trust to liquidate its remaining assets, after reaching a deal with the Electric Reliability Council of Texas Inc. to resolve ERCOT’s objections.

Under the plan, the sale of renewable energy certificates, the recovery of outstanding customer accounts, and other assets would provide the trust with a cash infusion.

Additional funds are anticipated to come from litigation, including Entrust’s $175 million lawsuit against Shell Energy North America US LP, according to court documents.

Judge Marvin Isgur said at a hearing Wednesday he would sign a confirmation ...