Energy Future bankruptcy plan approved, clearing way for NextEra

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By Tom Hals | WILMINGTON, Del.

WILMINGTON, Del. Energy Future Holdings Corp,
which owns the largest power network in Texas, received court
approval on Friday to confirm its plan to exit bankruptcy and be
acquired by NextEra Energy Inc in a deal valued at
around $18 billion.

Approval from the Public Utility Commission of Texas is
required for the purchase of Energy Future’s power distribution
business, known as Oncor. A decision is expected in the coming
months.

The commission last year scuttled a proposed acquisition of
Oncor by Hunt Consolidated Inc of Texas.

Energy Future said on Tuesday it had resolved the last main
disputes to its plan of reorganization, when its noteholders
reached an agreement to modify what they were owed.

Friday’s order confirming the plan by U.S. Bankruptcy Judge
Christopher Sontchi ended one of the country’s largest and most
expensive bankruptcy cases.

The company was created from the record $45 billion
leveraged buyout of TXU Corp in 2007, a deal led by KKR & Co and TPG Capital.

Energy Future was undermined by a steep decline in natural
gas prices that in turn led to depressed power prices and
rendered the company’s debt unsustainable.

The company filed for bankruptcy in 2014 to cut its $42
billion in debt. It has already spun off its power generation
business, known as Luminant, and its TXU retail utility to
senior lenders who were owed $24 billion.



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