Energy Future Holdings Corp., which has fought creditors over a proposed refinancing since its April bankruptcy filing, was sued by a trustee demanding a payment for holders of $2.2 billion in notes.
Computershare Trust Co., the trustee, said Dallas-based Energy Future owes the junior lenders compensation for buying back the high-interest securities early, according to a filing yesterday in U.S. Bankruptcy Court in Wilmington, Delaware.
The trustee accused Energy Future of trying to pull off in bankruptcy “what it could not accomplish outside of bankruptcy -- refinancing the second-lien notes at lower interest rates without paying the redemption premium.”
Energy Future is trying to exchange costly loans for lower-interest borrowings under an agreement struck with some creditors to reduce the debt load from its record $48 billion leveraged buyout in 2007. Creditors who didn’t sign up for the deal are fighting over special payments going to those that did, as well as redemption fees they say they are due.
Energy Future’s regulated unit “induced” investors to buy $406.4 million of 11 percent notes due in 2021 and $1.75 billion of 11.75 percent notes due in 2022 by offering premiums for early prepayment, Computershare said in the complaint.
The bankruptcy case is Energy Future Holdings Corp., 14-bk-10979, U.S. Bankruptcy Court, District of Delaware (Wilmington).