(Corrects fifth paragraph to show NextEra is based in Juno
Beach, Florida, and not Diller, Nebraska)
By Tom Hals
June 24 Energy Future Holdings rejected a $2.3
billion restructuring plan by NextEra Energy Inc that
would have given the alternative energy group a large stake in
Energy Future's power lines unit, according to court filings.
The proposal was made by NextEra and a group of investors
that hold second-lien notes issued by Energy Future's EFIH unit,
which in turn controls the Oncor power distribution business.
EFIH, or Energy Future Intermediate Holding, rejected the
proposal late on Monday in favor of a proposal already advanced
by a group of investors who hold the unit's unsecured bonds,
according to documents filed with the U.S. Bankruptcy Court in
NextEra, the largest U.S. generator of renewable energy, had
committed to contribute $1 billion to the proposal, which took
the form of a loan that would convert to equity in EFIH at the
end of the bankruptcy.
Shares of NextEra were up about 1.3 percent at $100.76, near
a 52-week high, in afternoon trade on the New York Stock
Exchange. The company is based in Juno Beach, Florida, and a
company spokeswoman said NextEra does not comment on potential
Energy Future filed one of the largest U.S. bankruptcies in
April and seeks to restructure more than $40 billion in debt.
Energy Future also plans to spin off the unit that owns the
TXU Energy retail utility and the power generating business
known as Luminant to holders of $24.4 billion in secured debt.
That part of its restructuring would not be affected by
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 private equity sponsors of the buyout are likely to lose
almost their entire investments in the bankruptcy.
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