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Energy Future Holdings Objection Filed

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Energy Future Holdings filed with the U.S. Bankruptcy Court an objection to the Internal Revenue Service’s (IRS) proofs of claims for unpaid taxes or penalties or, in the alternative, request that the Court estimate such proofs of claim for purposes of enabling distributions to proceed.

The objection asserts, “On October 9, 2014, October 16, 2014, and October 23, 2014, the IRS filed the Proofs of Claims, asserting tax and penalty claims in the aggregate amount of approximately $244 million against each and every one of 32 of the Debtors….The Debtors believe that the Proofs of Claims should be amended to reflect a total amount owed of approximately $47.6 million, which amount accounts for (a) finalized computations agreed with the IRS for tax years 1999–2009; (b) an agreed principal amount for 2011; (c) the Debtors’ estimate for accrued interest; and (d) amounts owed to the Debtors with respect to certain refunds (and related interest) claimed for tax years 2014 and 2015.”

In addition, “Should the Proofs of Claims remain on the register as asserted – again, approximately $244 million in priority claims against each of 32 of the Debtors – they will likely interfere with the EFH/EFIH Debtors’ ability to emerge from chapter 11. The transactions and distributions contemplated by the EFH/EFIH Plan take into account the Debtors’ estimate of the reconciled amount of the Proofs of Claims – that is, that only approximately $47.6 million in cash will be necessary to satisfy the IRS’ claims.”

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