What happened

Shares of Just Energy Group (NYSE:JE) more than doubled this morning, before settling back to a gain of 34% as of 11:50 a.m. EDT. The Canadian energy solutions company provided an update that investors found favorable. 

So what 

Just Energy announced it is one step away from closing its recapitalization plan. It said it is only awaiting final approval by the Federal Energy Regulatory Commission (FERC), the U.S. agency that regulates the transmission and sale of electricity and natural gas in interstate commerce. 

digital view of a home showing computerized home energy solution

Image source: Getty Images.

The company believes its plan will allow it to continue operating as an independent company and will result in sustainable growth. It announced its plan in July 2020, aiming to de-risk the business and add financial flexibility. 

Now what 

The company's "plan of arrangement" has received all necessary stakeholder approvals as well as a final order to proceed from an Ontario court. The plan includes converting about $320 million in convertible debt and preferred shares into equity, a new $75 million equity investment, and the extension of the due date for about $410 million in debt and credit facilities. 

The company says it will "materially" save on annual interest payments, adding flexibility as well as liquidity. It will also revamp its board of directors and include at least four new directors. 

Just Energy said business will continue normally for its employees, customers, and suppliers. Investors bid up shares in acknowledgement that the company should be able to continue to successfully operate and grow its business.