DALLAS, April 29, 2014 /PRNewswire/ -- The veteran bankruptcy attorneys at Dallas' Simon Ray & Winikka LLP have authored an insightful commentary about what creditors can expect in the now-filed Chapter 11 bankruptcy by Energy Future Holdings Corp. (EFH). "Energy Future Holdings Creditors: What to Expect" (subscription required), appears in the online legal newspaper The Texas Lawbook.
In the article published April 28, one day before EFH filed for bankruptcy protection, attorneys Daniel P. Winikka and Craig F. Simon describe the long-awaited filing from Dallas-based EFH and what the company's creditors can expect from the process. Mr. Winikka and Mr. Simon have worked on some of the nation's largest corporate bankruptcies, including the Chapter 11 restructurings for SemCrude, Kaiser Aluminum, Lyondell, Kmart and many others.
EFH currently faces approximately $40 billion in debt. The company's Chapter 11 is pending in the U.S. Bankruptcy Court for the District of Delaware before Judge Christopher S. Sontchi. Mr. Winikka, who has practiced before Judge Sontchi in other bankruptcy cases, notes that one threshold issue is whether the EFH case will remain in Delaware or be transferred to Dallas given that the trustee of certain EFH bonds already has objected to the Delaware venue based on the company's headquarters, operations and employees being located in Dallas.
"Although the Delaware courts are well known for their expertise in giant corporate restructurings, we also have a sophisticated bankruptcy bench in the Northern District of Texas" Mr. Winikka says. "Judge Sontchi has the discretion to transfer the case if he concludes doing so would be in the interests of justice or for the convenience of the parties."
The Texas Lawbook article describes the types of EFH creditors who may be able to get their claims paid quickly, and how those claims are likely to proceed through the bankruptcy process. Also noted is the possibility that some creditors may sell their claims against EFH, a common practice that can help creditors recoup a portion of their claims before the final bankruptcy plan is approved.
Previously practicing as partners in one of the largest, most prominent law firms in the world, the founding partners formed Simon Ray & Winikka LLP to create a top-tier law firm that provides real value to – and partners with – its clients.
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SOURCE Simon, Ray & Winikka LLP