The bankrupt Texas power company, Energy Future Holdings Corp., has reported that, according to Bloomberg News, it will file a detailed description next month of how it hopes to restructure the $40 billion of debt in less than a year. Energy Future Holdings filed for bankruptcy April 29, listing $49.7 billion in liabilities. Energy Future Holdings Corporation is an electric utility company headquartered in Energy Plaza in Downtown Dallas, Texas, United States. Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors.
As of February 2013, the company has been described as “struggling” which resulted in the April 29, 2014 filing for bankruptcy protection under Title 11 of the of the United States Bankruptcy Code. The prominent credit-rating firm Moody’s had called Energy Future Holdings “a financially distressed company with an untenable capital structure.”
Energy Future included the date for the disclosure statement in a status report today to U.S. Bankruptcy Judge Christopher Sontchi in Wilmington, according to Bloomberg News. The statement is due June 13 and the court must approve the disclosure before balloting can be held and will later take the results into consideration when deciding on the plan. In the report, Energy Future accused lower-ranking creditors of demanding to see “virtually every document or piece of paper” the company has.
Bloomberg News has reported that, Energy Future investors KKR & Co., TPG Capital and Goldman Sachs Capital Partners, ownership will be cut to less than 1 percent under a proposed refinancing, and that they have asked a judge to limit a probe of their decisions on the plan.
To put this into historical perspective, in Ancient Greece, bankruptcy did not exist. If a man owed and he could not pay, he and his wife, children or servants were forced into “debt slavery”, until the creditor recouped losses through their labor. Many city states in ancient Greece limited debt slavery to a period of five years; debt slaves had protection of life and limb, which regular slaves did not enjoy.
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