Report says Energy Future Holdings Moves Closer To Bankruptcy
April 3, 2014
Dallas-based Energy Future Holdings moved a step closer to a bankruptcy plan after a key creditor neared a reorganization agreement, Reuters reported. Sources told the news agency that Fidelity Investments, which holds some of Energy Future’s $45.6 billion of debt, is hashing out terms for the plan, which is being discussed by the power producer’s management, two groups of unsecured creditors, and the private-equity owners who took it over. The investment firm’s participation in negotiations is crucial because it enables Energy Future to enter bankruptcy with a pre-arranged plan that would reduce the time it takes to reorganize in Chapter 11. Fidelity had been a holdout among creditors to the company, which was formally known as TXU.