Comanche Peak parent company wins $5.4 billion loan approval

Comanche Peak Nuclear Power Plant/Photo by Kathryn Jones/GR Current

Comanche Peak Nuclear Power Plant (Photo by Kathryn Jones/GR Current)

By Kathryn Jones


Energy Future Holdings, parent company of energy generator Luminant, will be able to keep its businesses running under Chapter 11 bankruptcy protection thanks to a $5.4 billion loan approved by the bankruptcy court last Friday.

Luminant operates the Comanche Peak Nuclear Power Plant and other power plants.

EFH, the state’s largest power company, wants to use the loan to refinance its senior bonds. It also needs to pay the bills for its retail electricity and generator businesses as it goes through a complex financial restructuring.

The U.S. Bankruptcy Court in Wilmington, Del., is overseeing the massive case.

The refinancing of debt also includes a settlement of claims by investors clamoring to collect $690 million in early payment premiums. More than half of the investors, though, have decided to sue the company to get the full amount they’re owed, plus interest.

The Dallas-based company filed for Chapter 11 protection in late April in one of the largest bankruptcies of a non-financial company since the 1980s.

EFH is working on a restructuring plan to slash $42 billion in debt it acquired in the 2007 buyout of the former TXU Corp. led by Kohlberg Kravis Roberts, Texas Pacific Group and Goldman Sachs.

As hydraulic fracturing, or “fracking,” in the Barnett Shale and elsewhere triggered a natural gas boom, EFH profits also plummeted.


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