| July 1
July 1 Court hearings to determine if Energy
Future Holdings Corp, Texas's biggest power company, can adopt a
refinancing package that is key to its massive bankruptcy have
been extended through July 11 from the original schedule to end
"I'm worried about that amount of time being sufficient,"
Judge Christopher Sontchi of the U.S. Bankruptcy Court in
Wilmington, Delaware said at the start of Tuesday's session.
"We have a lot of witnesses," said Sontchi, who scheduled
time in court on Wednesday and July 10 and July 11. The hearings
started on Monday.
Sontchi is being asked to approve a loan package of about $2
billion to refinance high-yielding debt at Energy Future's EFIH
unit, which owns the profitable Oncor power transmission
The loan is being funded by unsecured bondholders of Energy
Future. Rather than repay the loan, the bondholders propose that
the financing should convert into about 60 percent ownership of
Energy Future when it exits bankruptcy. The opportunity to gain
control of the company has sparked two competing loan proposals
from other creditors, including one that has $1.6 billion of
financing from NextEra Energy Inc, a power company in
Juno Beach, Florida.
Energy Future filed one of the largest U.S. bankruptcies in
April, after years of lower-than-forecast power prices and
burdened by more than $40 billion in debt.
Much of that debt was taken on in the 2007 record leveraged
buyout of the former TXU Corp, led by KKR & Co, TPG
Capital Management and the private equity arm of
Separately, the company is planning to spin off to senior
creditors its unregulated power generation unit known as
Luminant and its TXU Energy retail utility.
(Reporting by Tom Hals in Wilmington, Delaware; Editing by Tom