The bankruptcy court for Texas-based power producer Energy Future Holdings on June 1 issued an order approving the extension of the exclusive deadline for the company to file a final Chapter 11 reorganization plan to Oct. 29 of this year, with a new deadline of Dec. 29 to solicit creditor support for that plan.
Without this approval, outside parties could have offered their own competing plans for reorganization. The approval came out of the U.S. Bankruptcy Court for the District of Delaware from Judge Christopher S. Sontchi.
Energy Future Holdings and related companies in bankruptcy on April 14 filed with the court an initial reorganization plan and an accompanying disclosure statement. These filings are subject to review and change as the bankrupt companies try to work out issues with credtors.
In April 2014, each of the debtors, including Texas-based power generator Luminant, filed a voluntary petition for protection with the court under the Bankruptcy Code due in part of a very high debt load and low power prices in Texas.
Said the executive summary of the April 14 disclosure statement: “[T]he Debtors believe that the Plan provides for a comprehensive restructuring and recapitalization of the Debtors’ pre-bankruptcy obligations and corporate form, preserves the going concern value of the Debtors’ businesses, maximizes recoveries available to all constituents, provides for an equitable distribution to the Debtors’ stakeholders, protects the jobs of employees, and ensures continued provision of electricity in Texas to the [Texas Competitive Electric Holdings Co. LLC] Debtors’ approximately 1.7 million retail customers and the smooth delivery of electricity to the entire state through the TCEH Debtors’ generation activities.”
Luminant is a competitive power generation business with power plant, coal mine, wholesale marketing and trading, and development operations in Texas. It has more than 15,400 MW of generation, including 2,300 MW of nuclear and 8,000 MW fueled by coal.