Energy Future Holdings Corp. yesterday successfully fended off questions from creditors anxious to probe the financial health of a company division that is the target of deal talks, the Wall Street Journal reported today. The questions arose in a brewing court fight over whether Energy Future owes millions of dollars of premiums on $4 billion worth of debt attached to the division, which owns an 80 percent stake in the Texas transmission business, Oncor. At some point, that fight may turn on the question of whether the division is solvent. The answer to that question is in the works, as Energy Future engages in talks aimed at selling the Oncor stake, probably by way of a complex transaction worked into a chapter 11 restructuring plan.
