On Thursday, February 16, 2017, the Delaware bankruptcy judge overseeing the Energy Future Holdings Corp. Chapter 11 bankruptcy, stated that the most recent plan for emergence from Chapter 11 met the standards for confirmation. While two objections to confirmation remain to be resolved, Judge Christopher S. Sontchi said Thursday that the plan met the requirements of Section 1129 of the Bankruptcy Code.
Previous readers visiting this site may recall the series of posts dealing with the saga surrounding Oncor Electric Delivery Co. LLC and the prior plan of reorganization considered by Judge Sontchi. That plan involved the reorganization of Oncor as a Real Estate Investment Trust (REIT) under the ownership of Hunt Consolidated. After obtaining approval of the REIT based plan, Hunt requested the blessing of the Texas Public Utility Commission (PUCT). The PUCT determined that the REIT approach to financing the deal proffered by Hunt favored investors at the expense of ratepayers. While the Texas Commission approved the Hunt acquisition, it attached certain conditions to the transaction for the protection of ratepayers which the Hunt team ultimately determined was not in the best interests of its investors. After Hunt abandoned its pursuit of the Oncor assets, NextEra stepped into the breach and offered a more conventional approach to financing the acquisition. The NextEra proposal goes before the PUCT for consideration next week.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.