Bankrupt power giant Energy Future Holdings hopes to abandon its restructuring plan and auction off its stake in the profitable power transmission business Oncor Electric Delivery Co.
The Dallas-based company says in a letter to employees Thursday that it'll conduct "a court-supervised bid process" in coming weeks to sell its 80-percent stake in Oncor. The proceeds would be allocated among creditors.
Energy Future filed for Chapter 11 bankruptcy reorganization in April in an attempt to halve a $40 billion debt load stemming from an ill-fated bet that natural gas prices would rise.
A glut of U.S. shale production instead brought natural gas prices to record lows. That made it difficult for the company to service the debt it took on to buy TXU Energy, Texas' biggest electricity retailer, in 2007.
Bankrupt Energy Future to Auction Stake in Oncor
Copyright AP - Associated Press
