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Monday, March 1, 2021

Hunt to acquire Oncor in bid to solve nearly $46B bankruptcy

FORT WORTH, Texas (AP) – Hunt Consolidated has reached an agreement to buy the Texas electric utility Oncor in a bid to resolve the $46 billion bankruptcy and breakup of power giant Energy Future Holdings.

Dallas real estate and energy mogul Ray L. Hunt and his partners announced Monday they would buy Energy Future’s power transmission arm and restructure the broader company into a real estate investment trust to save on taxes.

Moody’s analysts say the deal could lead to customer rate increases because of “dismantling of ring-fence provisions and higher leverage” across the corporation.

A bankruptcy court could review the deal in October. It also requires approval from the Public Utility Commission of Texas and a ruling from the IRS that splitting Energy Future does not trigger a $7 billion tax charge.

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