EFH Noteholders Lose Appeal Over Make-Whole Premium

Law360, New York (February 17, 2016, 5:17 PM EST) -- Energy Futures Holdings' senior noteholders lost an appeal Tuesday in Delaware federal court over whether the bankrupt utility owes lenders a sizeable make-whole premium after refinancing $4 billion in secured notes, the latest setback for bondholders in the ongoing dispute.

U.S. District Judge Richard Andrews said that a bankruptcy stay that went into effect when EFH filed for Chapter 11 in 2014 essentially blocked the noteholders' claim for a make-whole premium or subsequent damages. The decision affirms prior orders issued by the bankruptcy judge overseeing EFH’s restructuring.

The appeal was filed in July by parties that hold first lien notes that...

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