Comanche Peak parent company may scrap bankruptcy plan

From staff reports

Energy Future Holdings, the Texas power giant and parent company of Luminant and the Comanche Peak Nuclear Power Plant, said it may throw out or amend its bankruptcy restructuring plan if it can’t reach new terms with creditors.

Photo courtesy Nuclear Regulatory Commission

Photo courtesy Nuclear Regulatory Commission

The lead attorney representing EFH in its massive Chapter 11 case, Edward Sassower, told the U.S. Bankruptcy Court for the District of Delaware in a hearing Friday that the price of EFH debt has risen so much that the company might be able to get more for its assets, the Bloomberg financial news site reported.

Sassower told the bankruptcy court that EFH could amend or cancel the bankruptcy plan “in the next few days.”

The company announced Monday that it would extend the expiration date on its offer to purchase second-lien notes for cash as a “voluntary settlement.” The offer now expires on July 25.

About 35 percent of the holders of the $760 million of second-lien notes have agreed to the settlement, EFH said in a news release.

Various creditor groups have complained about being “unfairly compensated” for their bonds and notes and are holding out for more.

EFH filed for bankruptcy in April after it could not longer function under a staggering $40 billion in debt stemming from the largest-ever leveraged buyout that created the company and from falling natural gas prices.

Under the restructuring plan, EFH would split Luminant, its power generating business, and TXU Energy, its power retailing business, from Oncor, its transmission unit.

To further complicate matters, some dissident creditors have siding with two groups that want to take over Oncor – Hunt Consolidated of Dallas and NextEra of Florida.

Meanwhile, Hunt Consolidated headed by Ray L. Hunt further positioned itself by hiring David Campbell, Luminant’s former chief executive, to take over as president of Hunt Utility Services.

Campbell resigned in 2012 to join Bluescape Resources, an independent resource company based in Dallas, as president and chief operating officer.

Hunter L. Hunt, president and CEO of Hunt Consolidated Energy, said in a prepared statement Monday that Campbell brings a” wealth of experience to our efforts as we continue to expand our presence in the electric utility and infrastructure space.”

Hunter Hunt also serves as CEO of Sharyland Utilities, L.P., a privately held electric utility that is fully regulated by the Public Utility Commission of Texas.

“I have watched Hunt’s and Sharyland’s impressive growth in the utility business here in Texas,” Campbell said in the same prepared statement. “They have put together all the pieces needed to take their efforts to the next level, and I am excited to be joining them at this important juncture.”

 

 

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