Frontera Could Face Trouble in Mexico after Storm Halts Electricity Delivery

A lawyer for Frontera Holdings LLC, the owner of a natural gas plant near the U.S.-Mexico border, told a judge on Tuesday that it could face fines in Mexico after it was unable to provide electricity for several days due to the brutal winter storm that hit Texas, but that it intends to proceed with its proposed restructuring as planned, Reuters reported. Frontera attorney Matthew Fagen of Kirkland & Ellis told U.S. Bankruptcy Judge Marvin Isgur in Houston during a remote hearing that Frontera, which is the only U.S.-based natural gas operator that exports electricity exclusively to Mexico, could not provide the electricity it is required to deliver because the frigid weather “eviscerated” gas supply. Though the company does not know yet whether it will face any penalties as a result, its plan to exit bankruptcy in the spring remains intact, Fagen said. Read more.