Skip to main content

Energy Future postpones hearings after judge questions plans

Texas power company Energy Future Holdings has postponed indefinitely court hearings aimed at keeping its fast-track bankruptcy on course after a judge questioned the company's approach.

The company said in a filing on Tuesday that it was postponing hearings scheduled for Thursday and Friday at which it was hoping to win approval to borrow $1.9 billion to help finance its plan to exit bankruptcy early next year.

In April, Energy Future Holdings filed one of the largest U.S. bankruptcies with a plan to split the company in a bid to restructure more than $40 billion in debt.

The company also postponed a July 18 hearing when it hoped for approval of an RSA, or restructuring support agreement, which would commit the company and certain creditors to a schedule and a restructuring outline.

The company said it would use the time to discuss potentially beneficial developments with creditors and outside parties. It also said it would consider July 1 comments from U.S. Bankruptcy Judge Christopher Sontchi in Wilmington, Delaware, who questioned if the company was on the "appropriate path."

Energy Future planned to use the $1.9 billion loan, known as a debtor-in-possession or DIP loan, to refinance high-yielding debt of EFIH, its unit that owns Oncor, a regulated power transmission business.

Instead of repaying that loan, the unsecured creditors and their backers who were funding the loan would convert the financing into a stake of about 60 percent in Energy Future when it exited bankruptcy.

"This is clearly not your run of the mill DIP and there's evidence there are serious competing proposals," Sontchi said at the close of the July 1 hearing. He also questioned if the company should be seeking approval of the loan before getting approval of the restructuring support agreement.

"So I think candor requires that I convey that the debtors' record on these particular issues is fairly thin and is going to need more evidence to satisfy the court that this is the appropriate path to continue to go down," he said, according to a court transcript.

Hearings to approve that loan were held on June 30 and July 1, and were set to conclude this week.

Two groups of creditors wanted the company to consider their competing loans, one of which was backed with a $1.6 billion commitment by NextEra Energy Inc, a Florida power company.

Energy Future said in Tuesday's filing it would update the court on July 18.

Separate from its plan to refinance EFIH debt, Energy Future plans to turnover to senior creditors, who are owed $24.4 billion, its unit that owns unregulated power plants and a retail utility.

The case Energy Future Holdings, U.S. Bankruptcy Court, District of Delaware, No. 14-10979 (Reporting by Tom Hals in Wilmington, Delaware; Editing by Grant McCool)

Popular posts from this blog

Study Abroad USA, College of Charleston, Popular Courses, Alumni

Thinking for Study Abroad USA. School of Charleston, the wonderful grounds is situated in the actual middle of a verifiable city - Charleston. Get snatched up by the wonderful and customary engineering, beautiful pathways, or look at the advanced steel and glass building which houses the School of Business. The grounds additionally gives students simple admittance to a few major tech organizations like Amazon's CreateSpace, Google, TwitPic, and so on. The school offers students nearby as well as off-grounds convenience going from completely outfitted home lobbies to memorable homes. It is prepared to offer different types of assistance and facilities like clubs, associations, sporting exercises, support administrations, etc. To put it plainly, the school grounds is rising with energy and there will never be a dull second for students at the College of Charleston. Concentrate on Abroad USA is improving and remunerating for your future. The energetic grounds likewise houses various

Best MBA Online Colleges in the USA

“Opportunities never open, instead we create them for us”. Beginning with this amazing saying, let’s unbox today’s knowledge. Love Business and marketing? Want to make a high-paid career in business administration? Well, if yes, then mate, we have got you something amazing to do!   We all imagine an effortless future with a cozy house and a laptop. Well, well! You can make this happen. Today, with this guide, we will be exploring some of the top-notch online MBA universities and institutes in the USA. Let’s get started! Why learn Online MBA from the USA? Access to More Options This online era has given a second chance to children who want to reflect on their careers while managing their hectic schedules. In this, the internet has played a very crucial in rejuvenating schools, institutes, and colleges to give the best education to students across the globe. Graduating with Less Debt Regular classes from high reputed institutes often charge heavy tuition fees. However onl

Sickening moment maskless 'Karen' COUGHS in the face of grocery store customer, then claims she doesn't have to wear a mask because she 'isn't sick'

A woman was captured on camera following a customer through a supermarket as she coughs on her after claiming she does not need a mask because she is not sick.  Video of the incident, which has garnered hundreds of thousands of views on Twitter alone, allegedly took place in a Su per Saver in Lincoln, Nebraska according to Twitter user @davenewworld_2. In it, an unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of the customer recording her. Scroll down for video An unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of a woman recording her A woman was captured on camera following a customer as she coughs on her in a supermarket without a mask on claiming she does not need one because she is not sick @chaiteabugz #karen #covid #karens #karensgonewild #karensalert #masks we were just wearing a mask at the store. ¿ o