The largest power company in Texas, Energy Future Holdings Corp, began its bankruptcy turnaround by securing approval for an interim loan after seven hours of contentious arguments in bankruptcy court, Reuters reported yesterday. Bankruptcy Judge Christopher Sontchi approved the loan that was originally proposed at $2.7 billion, but he authorized that only $20 million could be spent. The company and its creditors will return to bankruptcy court today to continue battling over the remainder of the money. Energy Future, created in the 2007 buyout of TXU Corp, filed one of the largest non-financial chapter 11 bankruptcies in U.S. history on Tuesday after struggling more than a year to work out a deal with its creditors.
