A power company in Houston has angered hundreds of bondholders by announcing its new plans for Chapter 11 bankruptcy this month.

The parent company issued a statement earlier this month announcing its intention to protect major investors while pulling funds from bondholders. Although it has agreed to one plan proposed by the bondholders that would restructure $4 billion in debt, these same people stand to lose their portion of the company in the process.

However, by restructuring debts in this way, the company will continue serving utilities to customers in the West, Northeast and Midwest. The company blamed falling credit ratings and lower electricity prices over the past several years for lagging profits. Had the company gone another route, it would have been forced to sell off its assets to pay the $5 billion debt that it has accrued.

Analysts project that bondholders could lose between 60 percent and 72 percent of what they are owed.

Planning to file for bankruptcy in Houston, Texas? Get the legal help you need by contacting the Malaise Law Firm to obtain representation from a Houston bankruptcy lawyer.