Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Commodities  >  World (autre bourse)  >  NYMEX Henry-hub gas       

Mes dernières consult.
Most popular
News SummaryAll newsTweets

Judge to Reconsider NextEra Breakup Fee on Oncor Deal

share with twitter share with LinkedIn share with facebook
share via e-mail
09/19/2017 | 06:41pm CET
By Peg Brickley 

A bankruptcy judge on Tuesday dealt a blow to NextEra Energy Inc.'s campaign to collect a $275 million breakup fee for its failed attempt to take over Energy Future Holdings Corp.'s Oncor power-transmission business.

Judge Christopher Sontchi said he made an error last year when he approved the breakup fee in a deal Energy Future hoped would bail it out of bankruptcy. Reconsideration of the breakup fee order is appropriate, the judge said.

Tuesday's ruling is a win for creditors of Energy Future, which are now counting on a new deal -- the sale of Oncor to Sempra Energy, for $9.45 billion. That isn't enough money to pay off all the debts remaining in Energy Future's bankruptcy case, which began in 2014.

NextEra's claim to a $275 million breakup fee, had it succeeded, would have put a big dent in the pile of money Energy Future is expecting from the Sempra deal, leaving some creditors with a depleted recovery. Judge Sontchi's ruling that the breakup fee was approved based on an erroneous understanding casts serious doubt on whether NextEra will be able to collect.

The product of years of effort, NextEra's takeover attempt was rejected by the Public Utility Commission of Texas in a surprise ruling this year. Regulators said NextEra's buyout of Oncor, a power-transmission business that is a vital piece of the Texas power system, wasn't in the public interest.

Defeated in the deal, NextEra claimed it was entitled to collect the breakup fee from Energy Future, to cushion the blow of a takeover campaign that cost tens of millions of dollars.

The decision came in a fight led by Elliott Management Corp., a hedge fund that picked up big stakes in Energy Future debt earlier this year. Elliott has been leading creditors in an effort to spur aggressive action by Energy Future to defeat the breakup fee.

Write to Peg Brickley at [email protected]

Stocks mentioned in the article
ChangeLast1st jan.
NEXTERA ENERGY INC 0.02% 160.02 Delayed Quote.2.39%
SEMPRA ENERGY -1.27% 110.98 Delayed Quote.5.15%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on NYMEX HENRY-HUB GAS
04:37pShell interested in fresh natural gas projects in Brazil - executive
03/19E.ON Secures Renewable Energy Contract in Sweden
03/19Gas Natural to Buy Two Solar Projects in Brazil
03/19Total Gets Interests in Two Abu Dhabi Offshore Concessions for $1.45 Billion
03/18PG&E : After a Brief Reign at the Top, Natural Gas Is Under Assault
03/16Eni Unveils Strategic Plan; Proposes Higher Dividend for 2018
03/16Eni Sells License to Use EST Refining Technology to Zhejiang Petrochemicals
03/16Federal Regulators End Key Tax Benefit for Certain Pipeline Companies -- 2nd ..
03/16Federal Regulators End Key Tax Benefit for Certain Pipeline Companies -- Upda..
03/15Shell Selling New Zealand Assets to OMV for $578 Million
More news
Duration : Period :
NYMEX Henry-hub gas Technical Analysis Chart | 4-Traders