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Risks
1. Business operations could be disrupted: FirstEnergy Solutions Corp.'s bankruptcy could disrupt the operations of the businesses that sell to or purchase electricity from the company. Additionally, any changes to the debt structure could affect the company’s ability to continue making payments to creditors.
2. Uncertainty on the future of existing contracts: The future of any existing supply contracts with FirstEnergy Solutions Corp. is uncertain. New contracts may have altered terms or higher prices, making it difficult for businesses that depend on FirstEnergy Solutions Corp. to make long-term plans.
3. Increased financial strain on suppliers and customers: The bankruptcy could put increased financial strain on suppliers and customers due to debt restructuring and possible hikes in energy prices imposed by a new management regime. Additionally, suppliers could see their profits affected as suppliers to other energy companies could raise their prices, taking advantage of the reduced competition.
4. Changes in the energy landscape: Bankruptcy of the largest power plant operator in the region could lead to changes in the overall energy landscape, potentially disrupting current energy sources and opening the door to new, alternative energy sources.