Bankrupt power company Energy Future Holdings Corp. received conditional court approval to accept bids for its majority stake in Oncor, a power transmission company in Texas worth billions of dollars, Reuters reported yesterday. Bankruptcy Judge Christopher Sontchi said yesterday that Energy Future could begin accepting bids once it had changed the way affiliates approved of the plan to sell Oncor. He also said that the bidding process must involve the two official creditors committees and the time frame for the sale should be extended. "The immense size of this case and $18 billion asset is certainly unusual and the involvement of public companies as bidders is a complicating factor,” Judge Sontchi said. “But there is no reason to depart from established practices that have developed for selling an asset in bankruptcy.” Creditors had objected to the proposed process because it involved sealed bids to choose a stalking-horse bidder. Once the stalking horse was chosen, Energy Future planned to have an open auction when all bids could be reviewed by participants. Judge Sontchi said that Energy Future would have to allow the participation of the two official creditors committees in the selection of a stalking horse bidder. The company originally set a deadline for final bids for the role of stalking horse on Nov. 21, which Sontchi said would have to be extended.
