| July 9
July 9 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
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
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
The case Energy Future Holdings, U.S. Bankruptcy Court,
District of Delaware, No. 14-10979
(Reporting by Tom Hals in Wilmington, Delaware; Editing by