Energy Future’s $8.1 million hedging agreement claim settlement OK’d

By Caroline Salls

Pittsburgh, May 30 – Energy Future Holdings Corp. received court approval to enter an $8.1 million claim stipulation with Citigroup Financial Products Inc., according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

Energy Future said Citibank, NA provided notice of termination of a hedging agreement between the parties, with May 1, 2014 listed as the termination date.

Citibank subsequently filed a claim related to the hedging agreements against Energy Future in the amount of $8.25 million, plus interest, fees, costs and expenses. The claim was later transferred to Citigroup Financial by Citibank.

Under the stipulation, Citi will have an $8.1 million general unsecured claim against Energy Future. The claim will receive treatment provided for claims derived from or based upon swaps entered into by Energy Future.

All other claims related to the parties’ hedging agreements will be waived and released.

Energy Future, a Dallas-based power generation company and utility operator, filed for bankruptcy April 29, 2014. The Chapter 11 case number is 14-10979.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.