© 2015 The Texas Lawbook.
By James Osborne of The Dallas Morning News
(Dec. 3) – U.S. Bankruptcy Judge Christopher Sontchi ruled Thursday that Energy Future Holdings can move ahead on breaking up the company, setting the stage for Texas’ largest power company to emerge from bankruptcy court in the spring.
The ruling effectively ends a fight among hedge funds and Wall Street tycoons that just six months ago appeared as if it might drag out for years.
Judge Sontchi found EFH’s plan to hand its power plants and retail business TXU Energy to creditors and sell the power line business Oncor to an investors’ group led by Dallas billionaire Ray L. Hunt represented the best option for both the company and all its creditors.
“The plan is at its heart a business transaction involving tens of billions of dollars negotiated by sophisticated parties,” Sontchi said in court in Wilmington, Del. Thursday. “The evidence overwhelming supports confirmation of the plan.”
The ruling comes 19 months after the former TXU Corp. filed for Chapter 11 protection, claiming falling power prices in Texas had left it unable to pay debts largely amassed in a record $45 billion leveraged buyout in 2007.
For complete coverage, please visit The Dallas Morning News website at bizbeatblog.dallasnews.com.
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