Delaware Trust Co. v. Energy Future Intermediate Holding Co. (In Re Energy Future Holdings Corp.)

OPINION OF THE COURT

AMBRO, Circuit Judge

We address what happens when one provision'of an indenture for money loaned provides that the debt is accelerated if the debtor files for bankruptcy and while in bankruptcy it opts to redeem that debt when another indenture provision provides for a redemption premium. Does the pre mium, meant to give the lenders the interest yield they expect, fall away because the full principal amount is now due and the noteholders are barred from rescinding the acceleration of debt? We hold no.

I. BACKGROUND

A. The Notes

Energy Future Intermediate Holding Company LLC…