Dive Brief:
- A Delaware bankruptucy judge has determined that Energy Future Holdings can begin taking bids for its stake in Oncor, despite objections by creditors to a process involving sealed offers.
- But before Energy Future can begin the auction, the judge required it to allow a pair of creditors committees to participate in the initial stages of sealed bids, which determine a "stalking horse" bidder.
- Reuters reports that potential bidders include NextEra Energy, Hunt Consolidated and CenterPoint Energy.
Dive Insight:
Despite the size of the deal, Delaware Bankruptcy Judge Christopher Sontch said "we are not reinventing the wheel here."
Reuters reports the judge determined "the immense size of this case and $18 billion asset is certainly unusual and the involvement of public companies as bidders is a complicating factor. But there is no reason to depart from established practices that have developed for selling an asset in bankruptcy."
Energy Future's bid to sell Oncor is already behind schedule, reports Bloomberg. The company entered bankruptcy in April and had planned to complete the process in just under a year. But a proposed plan for paying creditors was opposed, and the sale of Oncor has been slowed by debate over the sale rules.
