By: Lance Murray |
A judge’s decision today on whether Energy Future Holdings can auction its Oncor Electric Delivery business on its own terms or bow to lenders seeking a later sale, will determine whether EFH can speed through it $42 billion Chapter 11 bankruptcy reorganization.
Bloomberg reported that Dallas-based EFH was met last month by lenders who opposed its proposed rules for a tax-free sale of Oncor before the company had a creditor-backed refinancing plan set up.
U.S. Bankruptcy Judge Christopher Sontchi will rule today on whether the sale of Oncor can follow EFH’s timetable and tax structure, Bloomberg said.
“This judge has shown a willingness to seriously consider objections to proposed actions of the debtor,” Chip Bowles, a bankruptcy attorney at Bingham Greenebaum Doll LLP, told Bloomberg. “He could easily require major changes.”
Bowles is not involved in the EFH case.
Oncor went on the auction block after takeover bids valued at more than $17.5 billion came from a group including Morgan Stanley and NextEra Energy Inc.