The bankruptcy court for Texas power producer Energy Future Holdings on Feb. 10 approved a much shorter new deadline for the filing of a reorganization plan than the power producer wanted.
The company’s Jan. 20 motion was to extend the time for it to exclusively file a reorganization plan by about eight months, to Oct. 29, and extend the deadline to win creditor acceptances of that plan through Dec. 29. These cases are pending at the U.S. Bankruptcy Court for the District of Delaware.
But the court on Feb. 10 only approved a new plan filing deadline of June 23, and an Aug. 23 deadline to line up creditor acceptances of any such plan. The order didn’t say specifically why the shorter deadlines were imposed. Notable is that the court didn’t preclude the filing of future extension requests, so Energy Future might wind up with its desired deadline through a later request.
Paul Keglevic, the Executive Vice President, Chief Financial Officer, and Co-Chief Restructuring Officer of Energy Future Holdings, said in Jan. 20 supporting testimony about the extensions that: “I believe that maintaining the Exclusivity Periods is critical to the Debtors’ ability to advance plan discussions beyond the early stages. If granted an extension of the Exclusivity Periods, I anticipate that the Debtors’ priority will be to facilitate a continued dialogue with their various stakeholders in order to accomplish the Debtors’ ultimate goal—achieving as much consensus as possible on a plan of reorganization that maximizes value and allows the Debtors to expeditiously exit chapter 11. I believe such a discussion will be more difficult in an environment where multiple plans can be proposed and parties become less willing to engage in a global restructuring discussion.
“In addition, based on the progress of such restructuring discussions to date, I believe that an extension of the Exclusivity Periods will motivate the parties to work with the Debtors to develop plan alternatives, as well as provide the Debtors with additional time to thoughtfully evaluate such alternatives with an eye towards maximizing the value of each of the respective Debtor’s estates. I also believe an extension of the Exclusivity Periods will allow the Debtors to make further progress on the sale process regarding the economic interest in Oncor Electric Delivery Company LLC….” Oncor is a power delivery unit of Energy Future Holdings.
Energy Future subsidiary Luminant is a competitive power generation business with plant, mine, wholesale marketing and trading, and development operations in Texas. It has more than 15,400 MW of generation, including 2,300 MW fueled by nuclear and 8,000 MW fueled by coal.