Energy Future Loses 3rd Circ. Make-Whole Fight With Lenders

Law360, New York (November 17, 2016, 6:32 PM EST) -- Energy Future Intermediate Holding Co. LLC shorted first-lien noteholders by about $431 million when it refused to hand them a make-whole amount while paying off $4 billion in notes accelerated by the company's Chapter 11 filing, the Third Circuit ruled in a precedential opinion Thursday.

Indenture trustees for first- and second-lien noteholders had appealed to the circuit after a bankruptcy judge and a Delaware district court rejected claims that the noteholders were shorted by hundreds of millions of dollars when EFIH refinanced notes in bankruptcy. But...
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