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NextEra Loses $275M in Canceled Bankruptcy Sale of Utility

Sept. 17, 2018, 4:22 PM

A Delaware bankruptcy court could remove from a previously approved merger agreement a $275 million fee that would be paid to NextEra Energy Inc. when the acquisition of an electrical utility failed to close, the U.S. Court of Appeals for the Third Circuit ruled.

The bankruptcy court first approved the merger under a mistaken apprehension of how and when the break-up fee would be triggered, Judge Joseph A. Greenaway Jr. wrote in the Sept. 13 opinion of the divided court.

Energy Future Holdings Corp. filed Chapter 11 in 2014. As part of its plan to reorganize, it sought to sell ...