Energy Future Holdings has finally made its long-awaited filing for bankruptcy protection following months of talks over the Texas utility's debt burden of more than $40B, which is a legacy of its massive LBO in 2007.
Energy Future filed for Chapter 11 prior to a deadline this week for the payment of $100M in debt.
The company hopes to use its Texas Competitive Electric Holdings unit, which sells power in wholesale markets, to receive debt forgiveness of $25B.
Energy Future's owners are KKR (KKR), Goldman Sachs Capital Partners (GS) and TPG Capital. One group of creditors includes Apollo Global (APO) and Oaktree Capital, and another involves Blackstone Group's (BX) GSO Capital Partners.