Threatened with a creditor revolt, Energy Future Holdings Corp. said that it would be distributing a term sheet this week outlining a proposal for reshaping its $42 billion debt load and ending a contentious stay in bankruptcy, the Wall Street Journal reported today. The announcement that the Dallas energy company is preparing an outline of a proposed reorganization plan came at a court hearing where multiple creditors expressed frustration at the lack of progress in the big chapter 11 case, which began last year. When it filed for chapter 11 protection, Energy Future brought with it a partially agreed-to restructuring strategy, which it later abandoned. In the months that followed, Energy Future hasn't come up with a new way out of chapter 11. The company won bankruptcy court approval yesterday to hang on to exclusive rights to file a chapter 11 emergence plan until June 23, at a hearing where creditors clamored for action. Energy Future originally asked to cling to sole control of the case until Oct. 29 but dialed back the request after creditors protested.
