We have taken an important step to address our balance sheet and put the company on a sustainable path for a stronger future. Specifically, Energy Future Holdings commenced a reorganization under Chapter 11 of the U.S. Bankruptcy Code on April 29, 2014. This process will give us the opportunity to reduce our debt, lower our annual cash interest costs and access significant additional capital. With a stronger financial foundation, we expect to be in an even better position to deliver for all of our stakeholders, including our employees, our customers and our business partners.
The Chapter 11 process is intended to permit a company to continue normal business operations while it reorganizes its balance sheet. In our case, this restructuring is focused on our balance sheet, not our operations, which remain high-performing.
It is very important for policymakers and regulators to know that we fully expect normal day-to-day operations to continue during the reorganization, including:
Wages and benefits for employees, with full protection under U.S. federal law for qualified retirement plans – both defined-benefit pension and 401(k) savings plans.
Qualified retirement plan payments and medical benefits for retirees.
Excellent customer service while honoring all retail customer agreements and actively competing in the marketplace.
Compliance with all regulatory obligations.
Payment to vendors and suppliers in the normal manner for all goods and services provided after the date of the Chapter 11 filing.
Commitment to sustainable business practices, from a community partner whose family of companies has a 130-year history in Texas.
Below, you’ll find some additional documents that provide detail concerning our financial restructuring.
We thank you for being our partner and we look forward to updating you on our progress.