In April 2014, Energy Future Holdings Corp. (“EFH”), a major Dallas-based power generator and distributor, filed for bankruptcy under Chapter 11 in the United States Bankruptcy Court for the District of Delaware. Upon filing its bankruptcy petition, EFH initiated a tender offer directed at its secured creditors, in an effort to settle its disputes with the creditors. The proposal offered, subject to bankruptcy court approval, each secured creditor 105% of their notes’ aggregate principal amount and 101% of the accrued interest, in exchange for the release of any potential claim to the make-whole premium (which compensated noteholders for the loss of future interest resulting from an early refinancing). Creditors who declined the offer retained their full claim and the right to litigate seeking to obtain full value for their make-whole premium.
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Is a policy analyst consultant for TCAP, a coalition of political subdivisions in Texas that purchase electricity in the deregulated market for their own governmental use. Because energy costs are typically a significant budget item to our members, TCAP is consistently looking for ways to save our members money, through cost-saving contracts, energy efficiency or demand response programs.