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Energy Future Says Fidelity May Fund $500 Million of Loan

An adviser to Energy Future Holdings Corp. said Fidelity Investments has an option to fund $500 million of a $5.4 billion loan for reorganizing its regulated power business, while Pacific Investment Management Co. has committed to backing almost $1.5 billion of the financing.

In a court filing this week, the adviser, David Ying, head of Evercore Group LLC’s restructuring group, also responded to junior lenders who object to incentives proposed for senior creditors, saying a 1.75 percent fee was reasonable and necessary to secure their support for the loan.