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.
Energy Future Holdings Corp., the Texas power company that plans to leave bankruptcy in less than a year, can’t reduce its $50 billion in debt without fighting junior creditors who face losing their investment.