Oncor to be sold in deal valued at over $18B

In a deal valued between $18 and $19 billion, bankrupt power giant Energy Future Holdings has agreed to sell its power-line subsidiary Oncor to Dallas energy and and real estate mogul Ray L. Hunt.

Energy Future makes the case that the sale of Oncor to a consortium that includes its junior creditors and the Texas teachers’ pension fund would pay off a larger pool of creditors faster than what had been planned and speed up its exit from bankruptcy court.

Energy Future filed for Chapter 11 protection from $40 billion in debt in Delaware in April 2014 – the losing end to what had been the largest leveraged buyout in U.S. history, according to The Dallas Morning News.

The Hunt consortium plans on placing Oncor – which serves more than 3 million customers across north and west Texas – in a real estate investment trust. A REIT has never been applied to a power utility of Oncor’s size, according to the report.

Read more in The Dallas Morning News.