Bankruptcy Judge Christopher Sontchi said yesterday that he would approve Energy Future Holdings Corp.’s plan of reorganization, clearing a major hurdle toward ending the contentious bankruptcy for Texas's biggest power company, Reuters reported yesterday. Under the plan, Energy Future will sell its Oncor power distribution business to a consortium led by Hunt Consolidated of Texas. That deal has been valued at $19 billion. Energy Future's power plants and retail utility will be spun off to senior creditors, which are owed $24 billion. The company has been slowly winning over creditors, and by the end of a weeks-long trial that ended in late November only a few objectors remained. Those included the U.S. Trustee, who objected to the payment of some legal fees, and a lawyer who represents people with asbestos injuries. Judge Sontchi overruled the objections, although he did require that some fee payments be reviewed for reasonableness.
