A judge yesterday cleared the way for Energy Future Holding Corp. to begin seeking creditor approval for a plan to end its massive bankruptcy, but also warned Texas's biggest power company that last-minute changes may endanger its chapter 11 exit, Reuters reported. The company has spent 18 months hammering out deals with its complicated web of creditors to reduce its $42 billion of debt. On Friday, Energy Future made last-minute changes to its plan to appease more creditors. However, the changes included dropping a proposal to pay cash to holders of some $1.9 billion in bonds, and instead reinstate some of the bonds. The plan also transferred the obligation for the bonds from the corporate parent to the company's power generation business. "The debtors are putting all their eggs in the basket that these creditors are unimpaired," Bankruptcy Judge Christopher Sontchi said yesterday. Hearings to confirm Energy Future's bankruptcy exit plan begin on Nov. 3.
