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Thursday, July 24, 2014

Energy Future seeks longer bankruptcy as it scraps plan, (NYSE: NEE)

Energy Future Holdings, the largest power company in Texas, asked a judge to extend the period in which it controls its Chapter 11 bankruptcy and said it is scrapping its original debt-cutting plan in favor of an auction of its Oncor unit. The company asked Delaware Bankruptcy Judge Christopher Sontchi to extend its exclusive right to seek a creditor vote on a plan of reorganization until April 25, 2015 from its current deadline in October.The company filed for bankruptcy on April 29, 2014 with a restructuring support agreement, or RSA, with some creditors that aimed to get a plan to cut its $40 billion in debt approved by Sontchi before February."Since the Debtors have filed for Chapter 11, certain parties have made potentially higher or better offers to the debtors and the debtors have decided to terminate the RSA to pursue such potential offers," the company's lawyers said in a Wednesday court filing.Energy Future's original plan triggered lawsuits by creditors, demands that it slow down the process and attracted the interest of possible buyers such as NextEra Energy Inc . Sontchi expressed skepticism about the company's approach to its restructuring plan on July 1.

NextEra Energy, Inc. (NEE) is an electric power company. Shares of NEE traded higher by 0.11% or $0.11/share to $98.60. In the past year, the shares have traded as low as $78.81 and as high as $102.51. On average, 2157120 shares of NEE exchange hands on a given day and today's volume is recorded at 459354.