Dive Brief:
- Generation and retail subsidiaries of Energy Future Holdings have emerged from bankruptcy, their parent TCEH Corp. announced this week.
- EFH and Energy Future Intermediate Holding Company LLC, which own an indirect 80% equity interest in Oncor, remain in bankruptcy and that proceeding is moving ahead on a separate schedule.
- TCEH's emergence from Chapter 11 covers Texas’ largest electric power generator, Luminant, and TXU Energy, a competitive retail electricity provider.
Dive Insight:
After two years of proceedings, EFH partially emerges from its Chapter 11 bankruptcy after some company restructuring.
TCEH has selected a new seven-member board and tapped Curt Morgan to serve as CEO. Morgan has most recently been a consultant for first-lien creditors of the organization he now leads.
The company’s available liquidity position is estimated about $1.65 billion, including $750 million of undrawn net borrowings available under a new $4.25 billion exit financing facility.
While the announcement marks the end of one side of EFH's bankruptcy, proceedings are still moving ahead on the regulated entities. This summer, NextEra Energy agreed to buy Oncor Electric Delivery from EFH in a deal valued at $18.4 billion.
Oncor is widely considered as EFH's most valuable asset and has been up for sale since the holding company tumbled into bankruptcy in 2014. The transmission and distribution utility provides power to more than 10 million consumers in Northeast and West Texas.
A previous bid by Hunt Consolidated to operate the utility as a Real Estate Investment Trust failed when regulators conditioned the deal on sharing tax benefits with consumers. NextEra's more-conventional bid is thought to have a better chance at approval.
