Energy Future Holdings filed with the U.S. Bankruptcy Court a motion for entry of an order to settle and pay pre-petition property taxes. According to documents filed with the Court, “Based on the updated information and full-year calculations, the Debtors have determined that there is approximately $120 million remaining to be paid on account of prepetition Taxes and Fees, of which approximately $100 million relates to Property Taxes. Although the majority of the outstanding Taxes and Fees in excess of the Initial Tax and Fee Cap relate only to Property Taxes, the Initial Tax and Fee Cap limits the Debtors’ ability to pay all types of Taxes and Fees. Accordingly, to ensure that the Debtors have authority to honor all prepetition Taxes and Fees (including all Property Taxes), the Debtors request authority to pay all unpaid, outstanding prepetition Property Taxes in an aggregate amount not to exceed the Additional Property Tax Cap….Additionally, the Debtors and the Taxing Authorities may agree to lower tax assessments in exchange for the Debtors’ agreement to make payment before the last day such payment can be made without penalty….The Debtors have sufficient funds to pay the amounts described herein in the ordinary course of business by virtue of expected cash flows from ongoing business operations, debtor-in-possession financing, and anticipated access to cash collateral.” The Court scheduled a December 18, 2014 hearing to consider the settlement, with objections due by December 11, 2014.
About Brandy Chetsas
Brandy L. Chetsas is editor in chief at Bankrupt Company News. She joined New Generation Research, Inc. in 1998. As Director of Strategic Content, she leverages 20+ years of communications and project management experience for the distressed investing sector--with particular expertise on corporate restructurings via Chapter 11. Brandy began her career writing for a law enforcement-related publication and teaching English courses at numerous colleges in the U.S. and abroad.