Aug 27 Energy Future Holdings, the big Texas
power company that filed for bankruptcy in April, said it will
present a proposal for auctioning the company after it scrapped
an earlier plan to exit Chapter 11 under control of unsecured
The company said it was evaluating potential proposals it
received from financial and strategic bidders, and opting for an
auction may indicate increasing interest in the company.
"We believe that a transparent and court-supervised
marketing process will maximize the assets' value, and we look
forward to providing the court with proposed procedures for this
marketing process in the coming weeks," said a statement from
company spokesman Allan Koenig.
The company had previously said it was in discussions with
potential bidders, which included Hunt Consolidated and NextEra
Energy Inc. Energy Future's crown jewel is its regulated
power distribution business known as Oncor.
NextEra had presented the U.S. Bankruptcy Court in
Wilmington, Delaware, with a proposal for acquiring
post-bankruptcy control of Energy Future, but the Florida
company withdrew that on Tuesday. It said in a court filing it
was pulling its proposal because an auction process would soon
NextEra's shares ended Wednesday up about 1 percent at
$96.89 on the New York Stock Exchange.
Bankrupt companies often opt for auctions as way to ensure
they are getting the best price for their assets. The money
raised would be used to repay some of Energy Future's $40
billion in debt.
Judge Christopher Sontchi will have to approve rules for
presenting bids and holding the auction. Bankruptcy auctions
often take at least three months from the first proposal until
the sale is approved by the court.
Energy Future owns two unregulated units, the Luminant
generating business and the TXU Energy retail utility. The
company has proposed spinning those units off to senior
Energy Future took on much of its debt in 2007, when it was
formed with the record buyout of TXU Corp, led by KKR & Co
, TPG Capital Management and the private equity
arm of Goldman Sachs.
The deal turned out to be an ill-timed bet on natural gas
prices, which soon began to plummet.
The case is In Re: Energy Future Holdings Inc, U.S.
Bankruptcy Court, District of Delaware, No. 14-10979
(Reporting by Tom Hals in Wilmington, Delaware; Editing by Tom