Information About Our Financial Restructuring
With the support of our key financial stakeholders, we've reached agreement on the terms of a financial restructuring plan to reduce our debt and create a sustainable capital structure to better support our high-performing operations. To implement this plan, we commenced a pre-arranged reorganization under Chapter 11 of the U.S. Bankruptcy Code on April 29, 2014. The filing includes Energy Future Holdings and certain of its subsidiaries, including TCEH (the holding company for our competitive businesses, including Luminant and TXU Energy) and EFIH (the holding company for our regulated business). Oncor is not a part of the Chapter 11 filing.
Chapter 11 is intended to permit a company to continue normal business operations while it reorganizes its balance sheet. It will give us the opportunity to reduce our debt, lower our annual cash interest costs and access significant additional capital as we position the company for the future.
We have obtained significant commitments from a group of lenders for new capital, called debtor-in-possession (DIP) financing, which reflects their high level of confidence in our business. Subject to Court approval, these financial resources will be made available to us to, among other things, help support our normal business operations during the Chapter 11 process.
Our operations are high-performing. This process is focused on restructuring our balance sheet, not on restructuring our operations. Importantly, we fully expect that normal day-to-day operations will continue during the reorganization, including:
- Wages and benefits for employees, with full protection under U.S. federal law for qualified retirement plans — both defined-benefit pension and 401(k) savings plans.
- Qualified retirement plan payments and medical benefits for retirees.
- Excellent customer service while honoring all retail customer agreements and actively competing in the marketplace.
- Compliance with all regulatory obligations.
- Payment to vendors and suppliers in the normal manner for all goods and services provided after the date of the Chapter 11 filing.
- Commitment to sustainable business practices, from a community partner whose family of companies has a 130-year history in Texas.
With a stronger financial foundation, we expect our company to be in an even better position over the long term to deliver for all of our stakeholders, including our customers, our employees, and our business partners.
Energy Future Intermediate Holding Company LLC and EFIH Finance Inc. Announce Extension of Early Participation Date and Expiration Date and Availability of Withdrawal Rights in Cash Tender Offer for Second Lien Notes in Connection with Second Lien Notes Settlement [PDF]
Energy Future Intermediate Holding Company LLC and EFIH Finance Inc. Announce Extension of Early Participation Date in Cash Tender Offer for Second Lien Notes in Connection with Second Lien Notes Settlement [PDF]
If you have additional questions, please contact your usual company representative or:
- TXU Energy Customers: www.txu.com/contact
- 4Change Energy Customers: www.4changeenergy.com/support
- Vendors and Suppliers: www.efhcaseinfo.com and (877) 276-7311
- Retirees: (888) 812-LINK (5465)
- Luminant: (214) 812-4600
- News Media: Media.Relations@energyfutureholdings.com or (214) 812-8080
- Claims Information and Court Documents: www.efhcaseinfo.com