BlackRock Has $903 Million in Junior Energy Future Notes

BlackRock Financial Management Inc. and Anchorage Capital Group LLC hold about $1.9 billion in Energy Future Holdings Corp.’s junior securities, according to a filing.

A group including the two investment firms, which also hold loans to the bankrupt power provider, disclosed their stakes in the company’s unregulated business May 30 in U.S. Bankruptcy Court in Wilmington, Delaware.

BlackRock holds $903 million, while Anchorage holds about $1 billion, according to the filing. The group’s combined stakes top $2.7 billion of $5.2 billion in unsecured notes outstanding.

Energy Future filed for bankruptcy in late April, saying it intended to exit in 11 months. The Dallas-based company has met opposition to its financing plans from lower-ranking creditors, including over a proposed $1.9 billion loan to its regulated unit.

After arranging an alternate loan, they pressed a judge last week to reject a $57 million fee the company would pay to lock in its chosen loan. Fees would go instead to junior lenders if their loan went ahead, according to filings.

The loan is part of a $40 billion debt refinancing plan that would hand control of the deregulated unit to senior lenders and give the unit that owns Texas’s biggest electricity-transmission company to a different group of creditors.

The case is Energy Future Holdings Corp., 14-bk-10979, U.S. Bankruptcy Court, District of Delaware (Wilmington).

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net

To contact the editors responsible for this story: Andrew Dunn at adunn8@bloomberg.net Jeff Sutherland

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