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Energy Future takes step towards massive bankruptcy filing

  • Energy Future Holdings' creditors have reportedly signed confidentiality agreements to review the Texas power utility's non-public financial information, an important step in what is expected become one of the largest ever bankruptcy filings.
  • Energy Future, formerly known as TXU Corp., is attempting to reach a prepackaged bankruptcy deal with debtees in order to avoid staying in Chapter 11 for too long.
  • A major deadline is November 1, when Energy Future is due to pay $270M to junior creditors.
  • One group of debtees includes Apollo Global (APO) and Oaktree Capital, while another involves Blackstone Group's (BX) GSO Capital Partners. Energy Future's owners are KKR (KKR), TPG and Goldman Sachs (GS).
This was corrected on 10/13/2013 at 01:56 AM.
Comments (1)
  • "One Of the largest bankruptcy filings"

     

    This was also one of the largest, if not the largest, private equity buyouts ever. For a public utility company? All pe firms involved should lose all of their investment before employee pension benefits are touched. TXU was a very financially strong public utility company prior to the massive buyout. Berkshire wrote $2b off already and as a shareholder of BRK-b I took a hit for that and so should KKR, Goldman, etc.

     

    Full disclosure - not an employee nor do I have a pension.
    22 Sep 2013, 10:38 AM Reply Like
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