Return to Blog

With 3 possible offers on the table, the fight for Oncor is getting interesting

Since August, the Energy Future Holdings bankruptcy revolved around the auction of its prized asset, the Oncor power line company. Attorneys flew back and forth to Wilmington, Del., to argue in U.S. Bankruptcy Court over timing. Motions were filed; bids were expected to reach north of $18 billion.

Now the former TXU Corp. is considering calling off the auction and selling Oncor to Dallas billionaire Ray L. Hunt, according to sources close to the negotiations.

For a case that has largely played by the book since EFH declared bankruptcy in April 2014, the move would represent a dramatic turn of events. Just a week ago, the Dallas-based company, the largest electricity provider in Texas, was on the verge of declaring a front-runner in the auction.

NextEra Energy, which owns Florida’s largest power utility and plants and wind turbines across the country, offered a deal valuing Oncor at about $18 billion. With rising profits and assets already established in Texas, the company appeared well-positioned to take over Texas’ largest power line network with 3 million customers. For the utility once slapped with the “stalking horse” label, it would be NextEra’s auction to lose.

But then Hunt, chairman of energy and real estate conglomerate Hunt Consolidated, stepped in late last week. Teamed up with a group of junior creditors that includes BlackRock Financial Management, Anchorage Capital and Arrowgrass Capital, Hunt proposed a deal the group says is more lucrative and offers a quicker route out of bankruptcy court.

Read more at: www.DallasNews.com

Disclaimer: Although the information contained herein is from sources believed to be reliable, TFS Energy Solutions, LLC and/or any of its members, affiliates, and subsidiaries (collectively “TFS”) makes no warranty or representation that such information is correct and is not responsible for errors, omissions or misstatements of any kind. All information is provided “AS IS” and on an “AS AVAILABLE” basis and TFS disclaims all express and implied warranties related to such information and does not guarantee the accuracy, timeliness, completeness, performance or fitness for a particular purpose of any of the information. The information contained herein, including any pricing, is for informational purposes only, can be changed at any time, should be independently evaluated, and is not a binding offer to provide electricity, natural gas and related services. The parties agree that TFS’s sole function with respect to any transaction is the introduction of the parties and that each party is responsible for evaluating the merits of the transaction and credit worthiness of the other. TFS assumes no responsibility for the performance of any transaction or the financial condition of any party. TFS accepts no liability for any direct, indirect or other consequential loss arising out of any use of the information contained herein or any inaccuracy, error or omission in any of its content. This document is the property of, and is proprietary to, TFS Energy Solutions, LLC and/or any of its members, affiliates, and subsidiaries (collectively “TFS”) and is identified as “Confidential.” Those parties to whom it is distributed shall exercise the same degree of custody and care afforded their own such information. TFS makes no claims concerning the validity of the information provided herein and will not be held liable for any use of this information. The information provided herein may be displayed and printed for your internal use only and may not reproduced, retransmitted, distributed, disseminated, sold, published, broadcast or circulated to anyone without the express written consent of TFS.