Creditors sue Energy Future Holdings (formerly TXU) for $665 million

A group of creditors in the Energy Future Holdings bankruptcy case are suing the power company, claiming its restructuring plan leaves them $665 million short.

CSC Trust, which represent a group of senior creditors in EFH’s trasnsmission arm, contends the company is trying to avoid paying them a premium due under the terms of their debt contracts.

Under the restructuring plan presented last month, EFH would refinance $3.5 billion in debt owed the creditors in Energy Future Intermediate Holdings through so-called debtor in possession loans. The debt contains provision that under such a refinancing, the creditors must be paid $665 million for their lost interest, according to the lawsuit.

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The litigation, filed Thursday in Delaware federal court, represents the latest challenge to EFH’s plans for a quick 11-month trip and out of bankruptcy court.

More at http://bizbeatblog.dallasnews.com/2014/05/creditors-sue-energy-future-for-665-million.html/ .