Private equity-backed utilities company Energy Future Holdings has secured approval for a $5.4bn bankruptcy loan.
Judge Christopher Sontchi has approved the loan and a settlement, which he said was fair, enabling the company to refinance its senior bonds. Investors holding less than half the nearly $4bn in senior bonds agreed to the settlement, said the Wall Street Journal.
The remaining 58 per cent of bondholders have taken legal action, seeking premiums of around $430m.
The company said at that time that it had secured loans of $4.475bn and $7.3bn for its subsidiaries Texas Competitive Electric Holdings and Energy Future Intermediate Holding.
Last year the company’s lenders turned down a proposed $32bn debt restructuring plan for being too lenient on Energy Future’s owners.
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