Energy Future Bankruptcy Plan in Jeopardy as Lenders Balk
By Linda Sandler and Steven Church July 18, 2014
Bloomberg News
Energy Future Holdings Corp. said it may reconsider its restructuring plan to pay hundreds of millions of dollars to select creditors after lenders left out in the cold forced talks on a rival deal.
Energy Future was set to lock in its plan before the fight, triggered by a rush to profit off its carcass. The resulting mess now risks scuttling the deal and imperiling company’s stated goal of exiting bankruptcy in March. A lawyer for Energy Future said today the agreement may be terminated within weeks.
U.S. Bankruptcy Judge Christopher Sontchi already approved two loans totaling $9.9 billion just weeks after the company’s April collapse. The loans are to help the company pay existing creditors, finance the reorganization and reward supportive lenders.
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