A federal judge has upheld a pre-bankruptcy settlement involving $4 billion in first lien notes, rejecting the trustee’s arguments that the settlement treated those within the same creditor class differently and that tender offers should not be used in the bankruptcy context.

The appeal in In re Energy Future Holding involved whether “make-whole” claims are allowed in the bankruptcy setting, according to the opinion by U.S. District Judge Richard G. Andrews of the District of Delaware.