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Energy Future Holdings Stipulation Filed

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Energy Future Holdings (EFH) filed with the U.S. Bankruptcy Court a stipulation and agreement between EFH and the Energy Future Intermediate Holdings (EFIH) first lien notes trustee and the EFIH second lien notes trustee.

The agreement notes, “The EFIH First Lien Notes Trustee and the EFIH Second Lien Notes Trustee anticipate challenging (among other things) the amount of funding the EFH/EFIH Debtors propose for the EFIH Claims Reserve, and its duration as proposed by the EFH/EFIH Debtors, based on anticipated disagreement concerning certain assumptions including: (a) the potential duration of the process to complete, to Final Orders, all litigation concerning the EFIH First Lien Makewhole Claims and EFIH Second Lien Makewhole Claims, (b) whether the methodology for calculating interest should be compounding on a daily or semi-annual basis, (c) the need to include in the EFIH Claims Reserve a reserve to cover all Claims asserted by the EFIH Second Lien Notes Trustee for interest on amounts paid to the EFIH Second Lien Notes Trustee that the EFIH Second Lien Notes Trustee may hold back and not distribute to holders of the EFIH Second Lien Notes (or that EFIH may be required to hold back) as a result of the EFIH Intercreditor Litigation (the ‘Future Interest Claims’), and (d) the assertion by the EFIH First Lien Notes Trustee that if EFIH makes distributions in respect of the EFIH Second Lien Notes, as EFIH proposes to do on the EFH Effective Date, such distribution would constitute a breach of the EFIH Collateral Trust Agreement such that EFIH either will be unable to make those distributions or will need to include in the EFIH Claims Reserve a reserve to cover the full amount potentially recoverable on all Claims by the EFIH First Lien Notes Trustee relating to or arising from that breach (and maintain such reserve until all such Claims have been resolved by Final Order).”

Read more EFH bankruptcy news.

The post Energy Future Holdings Stipulation Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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