Bluetooth is a promising wireless technology that enables devices to form short-range wireless ad-hoc networks or personal area networks. However, formation of the scatternet, or a Bluetooth network, is one of the challenges that needs to be resolved since their performance depends largely on the scatternet topology used. Further, to improve the performance of the scatternet, the energy capability of Bluetooth devices should be utilized to determine their roles in the scatternet with more capable devices performing more demanding roles. We present a distributed scatternet formation algorithm for creating energy-efficient scatternets of height-balanced binary tree topology. We also provide reorganization techniques on these tree scatternets to maintain energy efficiency and handle device arrivals and departures. We present simulation results, conducted using the Blueware simulator, to study and compare the creation and maintenance of our scatternet.