The U.S. Bankruptcy Court issued an order confirming the First Amended Joint Plan of Reorganization [Further Revised] for Energy Future Holdings (EFH) and Energy Future Intermediate Holding (EFIH). Among other things, the Plan provides for Sempra Energy’s $9.5 billion cash acquisition of EFH, and its indirect, approximate 80% ownership interest in Oncor Electric Delivery Company (Oncor).
Under the Plan, EFIH’s first and second lien note claimholders receive full cash payment; general unsecured claims against the EFIH Debtors receive a share of the unsecured creditor recovery pool. In addition, EFH’s general unsecured claimholders receive a share of the recovery pool and, under certain circumstances, share of a settlement distribution. Interests in EFH will be cancelled without distribution.
According to Sempra Energy, approval by the Public Utility Commission of Texas (PUCT) is the final major regulatory milestone before the transaction can be completed, and the PUCT is expected to consider an order approving Sempra Energy’s and Oncor’s joint change-in-control application as early as March 8, 2018.
Debra L. Reed, chairman, president and C.E.O. of Sempra Energy, comments, “Today’s action by the Bankruptcy Court paves the way for EFH to end its long-running bankruptcy case and advances our proposal to acquire a majority stake in Oncor to the final stage.” This electric utility company filed for Chapter 11 protection on April 29, 2014, listing $41 billion in pre-petition assets.
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