Energy Future Holdings Corp. yesterday defended its plan to put nearly $9.9 billion of bankruptcy loans in place this week and said the financing is picking up support among critics, MarketWatch.com reported today. The Texas power company said it has made "significant progress in brokering a settlement" regarding concerns creditors have raised about a $4.475 billion loan to support operations at its Texas Competitive Electric division. According to the company, cutting down the size of the bankruptcy financing for Texas Competitive, which some creditors have suggested isn't a good idea, "given the volatility of the energy market and the highly favorable terms" of the loan. Lower-ranking creditors have said the Texas Competitive loan ties up too much of the company's scarce unpledged assets, signing away value that could be used to pay them instead.
