OppenheimerFunds Inc. and Nuveen Asset Management LLC lead municipal-bond investors that may see as much as $1 billion of combined holdings wiped out as Energy Future Holdings Corp. teeters on the brink of bankruptcy.
Marc Lipschultz, head of KKR & Co.’s Energy and Infrastructure unit, resigned from the board of directors at Energy Future Holdings Corp., the biggest power provider in Texas that’s seeking to restructure its $45.6 billion of debt.
Bonds of a unit of Energy Future Holdings Corp. jumped by the most in more than two months on the same day the electricity provider was required to begin making cash coupon payments on another one of its securities.
As Texas warns of potential power shortages and blackouts this summer, the state’s biggest electricity producer is teetering toward bankruptcy. That may turn out to be a boon to the $34 billion Texas power market.
A group of Energy Future Holdings Corp. secured creditors including Apollo Global Management LLC is breaking from competing lenders as it seeks to squeeze value out of the electricity provider in a debt restructuring.
KKR & Co., TPG Capital and Goldman Sachs Capital Partners, which took the former TXU Corp. private five years ago in the largest leveraged buyout in history, have paid themselves $528.3 million in fees, even as the electricity provider teeters toward a near-term bankruptcy or restructuring.
Energy Future Holdings Corp.’s most senior lenders, who just lost their claim to $270 million that the struggling Texas power provider paid out in interest Nov. 1, are poised to cede more cash as it prepares to make about $390 million in additional payments to other debtors.