TCEH Corp. today announced that it and certain of
its subsidiaries, including operating businesses Luminant and TXU Energy,
have emerged from Chapter 11 as a standalone company effected through a
tax-free spinoff from Energy Future Holdings Corp. The emergence follows
satisfaction of all necessary conditions, including regulatory approvals
required by EFH’s Third Amended Plan of Reorganization, which was approved
by the U.S. Bankruptcy Court for the District of Delaware on August 29,
2016.
EFH and Energy Future Intermediate Holding Company LLC, which own an
indirect 80 percent equity interest in Oncor, remain in Chapter 11 and are
proceeding toward confirmation and emergence on a separate, standalone
schedule.
Concurrent with emergence, TCEH Corp. has issued 427.5 million shares of
its common stock, as well as other proceeds, to the pre-emergence
first-lien creditors of Texas Competitive Electric Holdings Company LLC
(“Former TCEH”). Beginning today, this common stock is publicly traded on
the OTCQX market under the ticker symbol THHH.
TCEH Corp. has also appointed a new board of directors consisting of Gavin
Baiera, Jennifer Box, Jeff Hunter, Michael Liebelson, Cyrus Madon, Curt
Morgan and Geoffrey Strong. Curt Morgan will assume responsibilities as
chief executive officer of TCEH Corp., effective immediately. During his
35-year career, Mr. Morgan has held leadership responsibilities in nearly
every major U.S. power market. Most recently, he had been serving
as a consultant for Former TCEH’s first-lien creditors. Prior to that, he
was an operating partner at Energy Capital Partners, a private equity firm
focused on investing in North America’s energy infrastructure. Earlier in
his career, Mr. Morgan served as the president and CEO of both EquiPower
Resources Corp. and FirstLight Power Resources, Inc. He recently served as
a director of Summit Midstream Partners and has held leadership positions
at NRG Energy, Mirant Corporation, Reliant Energy and BP Amoco.
“TCEH Corp. emerges from the restructuring process with a superb integrated
business,” said Mr. Morgan. “This includes TXU Energy and Luminant – both
of which are competitive, well-resourced and positioned for continued
operational excellence in the growing Texas market with a strong balance
sheet and the potential for stable earnings and significant cash
generation. This outcome would not have been possible without the support
of key stakeholders, including the company’s valued people, customers and
business partners. So while industry conditions remain challenging – and we
must continue to adapt accordingly – the long-term potential of our
integrated business, combining an innovative, customer-focused retail
business with a safe, reliable, cost-effective generation company, is
extremely powerful.”