Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds / Energy

Energy Future Holdings Plan Filed, Confirmed

Energy Future Holdings (EFH) filed with the U.S. Bankruptcy Court a Modified Sixth Amended Joint Plan of Reorganization. As previously reported, the Plan contemplates a tax-free spin of the Company's competitive businesses, including Luminant and TXU Energy, and the sale of its holdings in Oncor to a consortium of investors. According to documents filed with the Court, "Before the Reorganized TCEH Conversion, Reorganized TCEH shall enter into the New Reorganized TCEH Debt Documents and incur the New Reorganized TCEH Debt. Confirmation shall constitute approval of the New Reorganized TCEH Debt Documents, and authorization for Reorganized TCEH to enter into and execute the Reorganized TCEH Debt Documents, subject to such modifications as Reorganized TCEH may deem to be reasonably necessary to consummate the Reorganized TCEH Debt Documents. Reorganized TCEH will distribute the Cash proceeds of the New Reorganized TCEH Debt to TCEH, and TCEH shall use such proceeds (or such New Reorganized TCEH Debt) to fund distributions to certain Holders of Claims against the TCEH Debtors in accordance with the Plan. Reorganized TCEH shall be authorized to issue 450,000,000 shares of Reorganized TCEH Common Stock, subject to dilution only by the Reorganized Debtor Management Incentive Plan." On December 7, 2015, the Court entered a formal order confirming the Plan. Plan effectiveness will not occur until regulatory approvals are granted and other closing conditions are satisfied. That process is expected to extend into the spring of 2016, though final timing is subject to modification. This power generation and retail electricity provider filed for Chapter 11 protection on April 29, 2014, listing $41 billion in pre-petition assets.

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