Energy Future Holdings calls off sale of power business amid $42 billion bankruptcy

Energy Future Holdings Corp. canceled plans to auction its valuable power-distribution business and will try to resolve its $42 billion bankruptcy under one of two proposals backed by rival groups of creditors.

Unsecured creditors backed by Hunt Consolidated Inc. are trying to round up enough senior debt-holders to push through a reorganization plan worth about $19 billion. If they succeed, Energy Future would seek court approval of the plan in October.

If Hunt can’t reach consensus with investors who lent money to Dallas-based Energy Future’s power-generating business, the bankrupt company would proceed with a proposal supported by creditors led by Fidelity Investments. Both groups proposed raising billions of dollars to pay down debt through a sale of shares in a reorganized Energy Future.

Energy Future filed its $42 billion bankruptcy last year with a plan to break itself in two, giving each part to different sets of creditors. Groups that felt left out of that proposal have been fighting since then.

Read more: http://fuelfix.com/blog/2015/06/25/energy-future-holdings-calls-off-sale-of-power-business-amid-42-billion-bankruptcy/#31510101=0