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Energy Future Holdings Bankruptcy Compromise Approved

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The U.S. Bankruptcy Court approved Energy Future Holding’s compromise and Energy Future Intermediate Holdings’ (EFIH) settlement between the Debtors, certain holders of EFIH first and second lien note claims and certain holders of EFIH unsecured note claims.

As previously reported, “For the EFIH first lien claims, the Debtors will pay 95% of the Makewhole Claims in respect of the EFIH first lien notes and the interest, at the contract rate, on the EFIH first lien makewhole claims accrued as of the date of repayment, 100% of the documented fees, expenses and indemnification claims, if any, incurred by the EFIH first lien notes trustee and supporting EFIH first lien creditors and 100% of any additional accrued and unpaid interest, again at the contract rate.”

The motion continues, “For the second lien claims, the Debtors will pay (a) 87.5% of (i) the makewhole claims in respect of the EFIH second lien notes and the interest, at the contract rate, on the EFIH second lien makewhole claims accrued as of the date of repayment, pursuant to section 506(b) of the Bankruptcy Code, 100% of the documented fees, expenses, and indemnification claims, if any, incurred by the EFIH second lien notes trustee and supporting EFIH second lien creditors, (c) 100% of accrued and unpaid principal amount of the EFIH second lien notes and interest thereon accrued as of the date of repayment, and (d) 100% of any additional accrued and unpaid interest, again at the contract rate.”

In addition, “Importantly, the EFIH settlement obviates the need to escrow billions of dollars pending resolution of the makewhole Litigation. In the absence of the EFIH Settlement, the Debtors were prepared to escrow $1.301 billion on account of the Makewhole Claims and asserted Claims for interest, fees and expenses.”

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