Energy Future negotiates $9.01 million payment with claims stipulation

By Kali Hays

New York, Aug. 27 – Energy Future Holdings Corp. is seeking approval of a stipulation resolving claims of Luminant Generation Co. LLC, Luminant Mining Co. LLC, Sandow Power Co. LLC, and Alcoa Inc. related to pre-bankruptcy operational agreements, according to an Aug. 26 motion with the U.S. Bankruptcy Court for the District of Delaware.

Alcoa owns an aluminum smelter facility located in Rockdale, Texas, which Luminant Generation, Luminant Mining and Sandow supplied energy for.

Specifically, the stipulation will allow Alcoa to net and set off certain agreed, undisputed pre-bankruptcy claims that Energy Future owes against amounts that Alcoa owes to Energy Future, resulting in a net payment to Energy Future totaling $4.96 million.

The stipulation will also allow the same net and set-off process between Alcoa and Energy Future on outstanding post-bankruptcy claims resulting in an additional payment to Energy Future of $4.05 million.

Energy Future said it would like to continue to net its post-bankruptcy debts on a monthly basis and to pay and settle all outstanding amounts owed to the parties in the ordinary course of business, according to the motion.

A hearing is scheduled for Sept. 16.

Energy Future, a Dallas-based power generation company and utility operator, filed for bankruptcy on April 29. The Chapter 11 case number is 14-10979.

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