Elliott Management Confirms Working On $18.5 Billion For Oncor
July 10,2017
Elliott Management Corporation, a creditor of Energy Future Holdings, disclosed that it has been in the process of negotiating a term sheet for a fully consensual restructuring of Energy Future Holdings, "that values Reorganized EFH/EFIH at approximately $9.3 billion and Oncor at approximately $18.5 billion."
Berkshire Hathaway Energy's recently announced offer for Oncor was $9 billion ($18.1 billion with debt)
In a letter to the EFH board, Elliott Management Corporation stated, "While we are entirely supportive of a transaction with Berkshire or another third party in the event that the value provided by that transaction exceeds the value being proposed by Elliott, we fear that the Berkshire transaction does not provide such value."
"Almost by definition, any transaction other than a creditor-led equitization that incorporates the current Oncor ring-fencing provisions 'as is' would introduce increased regulatory risk and therefore would increase both closing uncertainty as well as the potential for additional delay, leading to clear present value diminution to EFIH unsecured creditors," Elliott Management Corporation stated