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Court ruling puts Energy Future bankruptcy plan in doubt

Published 11/17/2016, 06:25 PM
Court ruling puts Energy Future bankruptcy plan in doubt
NEE
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  • A U.S. appeals court rules that Energy Future Holdings must pay hundreds of millions of dollars for early redemption of notes during its bankruptcy, jeopardizing the power company's planned exit from bankruptcy.
  • The ruling overturns a bankruptcy judge’s ruling that Energy Future noteholders could not collect $431M for lost interest when their bonds were refinanced after the company filed for bankruptcy.
  • The court said the bankruptcy judge erred when ruling that a technicality of the law prevented noteholders from collecting “make-whole” payments.
  • It is not clear how the ruling that boosts Energy Future’s debt by hundreds of millions of dollars will affect NextEra Energy's (NYSE:NEE) proposal to buy its Oncor electricity transmission business for ~$18.4B.


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