August 1, 2016
Special counsel Benjamin D. Feder was quoted in the Megawatt Daily article “NextEra Wins Highly Sought Wires Asset in Oncor.” NextEra reached an agreement to purchase Energy Future Holdings’ (EFH) 80% equity stake in Oncor Electric Delivery. The deal is part of a reorganization plan to take EFH out of Chapter 11 bankruptcy by the end of 2016.
Under the reorganization and bankruptcy exit plan, the smaller NextEra spinoff is expected to be tax free with a hearing about the matter scheduled for August 17th in the Delaware bankruptcy court. Mr. Feder said, “[EFH and the TCEH creditors] have just been awaiting that letter from the IRS and from all accounts…As long as they have IRS approval, it will almost certainly go forward, regardless of wat happens with Oncor.” Feder also said he was not surprised by the announcement and the terms of the transaction.