Energy Future Paves Way for Unit’s Bankruptcy

An $850 million bond sale from Energy Future Holdings is paving the way for the power producer to potentially put its unregulated unit into bankruptcy.

Proceeds from the sale, a portion of which was secured by the firm’s equity interest in Oncor Electric Delivery, will be used to repay a loan to Energy Future’s Texas Competitive Electric Holdings.

Repayment allows it to put Texas Competitive into bankruptcy without triggering defaults elsewhere, according to Covenant Review.

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