Energy Future indenture trustee appeals first-lien settlement approval

By Caroline Salls

Pittsburgh, June 10 – Energy Future Holdings Corp. indenture trustee CSC Trust Co. of Delaware appealed the June 6 order approving the Energy Future Intermediate Holding Co. LLC (EFIH) first-lien settlement, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

Under the settlement, restructuring support agreement parties will exchange their 10% first-lien note claims, including alleged make-whole claims, into EFIH first-lien debtor-in-possession claims.

The exchange will be made in an amount equal to the greater of 105% of the principal plus 101% of unpaid interest through the first-lien DIP financing closing date and 104% of the principal, plus interest at the non-default rate through closing of the DIP facility plus an original issue discount paid in connection with the initial syndication of the first-lien DIP facility.

The first-lien support agreement parties will be entitled to interest on the EFIH DIP facility, but no fees.

Also under the settlement, backstop parties will fund $1.7 billion of the first-lien financing.

Energy Future, a Dallas-based power generation company and utility operator, filed bankruptcy on April 29. The Chapter 11 case number is 14-10979.

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