The prospective bankruptcy filing of Energy Future Holdings Corp., taken private in the biggest leveraged buyout in history, is poised to put the most profitable unit of the power producer up for grabs.
Energy Future Holdings Corp. is near obtaining commitments from lenders for about $7.2 billion in loans for the power provider’s regulated businesses as part of a plan to speed a bankruptcy reorganization, according to two people with direct knowledge of the talks.
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.
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.
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.