Creditors linked to the valuable transmissions business that is the centerpiece of Energy Future Holdings Corp.'s bankruptcy-exit plan criticized the company's turnaround strategy as unfair and illegal, Dow Jones Daily Bankruptcy Review reported today. The objections came as the Dallas energy company readies for the start of a court contest over its strategy for appeasing creditors owed $42 billion. Creditors with claims on Oncor, the transmissions business, contend that the deal at the heart of Energy Future's bankruptcy emergence plan strips them of rights and sticks them with risk. Energy Future wants to sell its Oncor transmissions business and pay off creditors of one division while spinning out its other division as a separate company, owned by senior creditors.
