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Energy Future Holdings Objection Filed

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Somervell County filed with the U.S. Bankruptcy Court an objection to Energy Future Holdings’ Joint Plan of Reorganization.

Somervell County asserts, “The Taxing Unit holds secured tax liens for ad valorem taxes for approximately $1,067,202,800….The Taxing Units object to confirmation of the Plan to the extent that it treats its claim as anything other than a secured claim. The Taxing Unit’s claims are fully secured ad valorem tax claims pursuant to Texas law….The Taxing Units object to the confirmation of the Plan to the extent it provides for payment to creditors of lower priority prior to the satisfaction in full of its secured tax claim, to the extent it is not, or may not be, adequately protected. ”

The objection continues, “The Taxing Units object to the confirmation of the Plan to the extent that it provides that any lien, other than Texas tax liens, is of higher priority than its liens, as to pre-petition and post-petition claims….The Taxing Units object to the confirmation of the Plan to the extent that it fails to clearly state when payment for its secured claim can be expected….The Taxing Units object to confirmation of the Plan to the extent that it does not contain cure provisions in case of a default in plan payments to the Taxing Unit. The Taxing Units object to the confirmation of the Plan to the extent that the Plan contains no clear deadline for objecting to its secured tax claim.”

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