Energy Future set to file for Chapter 11 with $40B+ in debt

|By:, SA News Editor

Energy Future Holdings is preparing to file for bankruptcy protection after creditors failed to agree on how to restructure the Texas power utility's $40B+ of debt following months of talks, the WSJ reports.

The filing would probably lead to a break-up of Energy Future's two largest operating units, with the company trying to organize bankruptcy loans of over $4B for its main regulated and unregulated subsidiaries.

Energy Future's owners, KKR (KKR), Goldman Sachs Capital Partners (GS) and TPG Capital, are hoping to retain some sort of stake in the company.

One group of debtees includes Apollo Global (APO) and Oaktree Capital, while another involves Blackstone Group's (BX) GSO Capital Partners.