DALLAS: Dallas-based consulting firm Perry Street Communications is working with Energy Future Holdings, an electric utility company, as it rebounds from filing one of the largest Chapter 11 bankruptcies on record in April.
Court records filed on Monday show the firm’s relationship with Energy Future Holdings, which filed for bankruptcy after years of lower-than-expected power prices. The company also had more than $40 billion in debt at the time.
New investors in the company are Hurt Consolidated and the Teacher Retirement System of Texas. Meanwhile, several of the company’s lenders have asked a Delaware judge to slow down the company’s bankruptcy proceedings.
Representatives at Perry Street Communications declined to comment on the communications strategy for Energy Future’s bankruptcy.
Energy Future spokesman Allan Koenig explained in an emailed statement that the company’s pay-for-performance compensation philosophy "seeks to incentivize operational excellence and instill a culture of ownership and accountability throughout the company – from executive management to all staff."
As part of the bankruptcy proceedings, Energy Future has been seeking protection in court with a pre-arranged restructuring plan aimed at reducing debt, lowering annual cash interest costs, accessing significant additional capital, and creating a sustainable capital structure for the future. Energy Future and some of its subsidiaries, including Texas Competitive Electric Holdings Company and Energy Future Intermediate Holding Company, have filed voluntary petitions for reorganization, the company said in a statement.
The restructuring plan will help Energy Future better serve stakeholders, including customers, employees, and business partners, Young said in a statement in April.
"This restructuring is focused on our balance sheet, not our operations. We fully expect to continue normal business operations during the reorganization," he added.
Energy Future created a section on the company’s website to communicate information about its financial restructuring aimed at customers, vendors, suppliers, retirees, and the media.