Bankruptcy not being felt locally
Since last Tuesday (May 1) Luminant has been in bankruptcy, but there’s been little change at work sites for Milam County’s largest employer.
And there shouldn’t be, according to the company.
“This restructuring is a financial one,” Allan Koenig of Energy Futures Holdings (EFH) Dallas office told The Reporter on Monday.
“That means we are dealing with the debt on our balance sheet,” he added. “Our plants and mines are not the issue here.”
Luminant operates Sandow Power Plant Units 4 and 5 near Rockdale. They are powered by coal from the Three Oaks Mine in Lee and Bastrop Counties.
Luminant’s parent company is EFH, which is seeking bankruptcy protection to manage $40 billion in debt.
LOAN—On Friday, Judge Christopher Sontchi, who is overseeing the bankruptcy, okayed an anticipated $2-billion-plus loan to keep Luminant and TXU Energy going through the complex bankruptcy proceedings.
EFH had initially sought $2.7 million for those purposes.
The initial hearing last week overflowed Judge Sontchi’s standing-room only courtroom and three more courtrooms had to be opened up to accommodate all the attorneys, advisors and observers involved in the proceedings.
And some “second tier” creditors of EFH are already challenging the entire proceedings.