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.
Energy Future Holdings Corp., the Texas power producer taken private in 2007 in the largest leveraged buyout, sees earnings for its competitive power unit tumbling by a third during the next five years as hedges against natural gas prices expire.
Energy Future Holdings Corp., the Texas power company taken private six years ago in the largest leveraged buyout, won’t have to pay a potential tax liability on $23 billion when transferring ownership of some of its units, according to a decision by the U.S. Internal Revenue Service.
Five years after their record- setting leveraged buyout of Energy Future Holdings Corp., KKR & Co. and TPG Capital are moving closer to a possible new milestone: the biggest bankruptcy of a private equity-backed company since the failure of Chrysler Group LLC.
Derivatives signal Energy Future Holdings Corp. is persuading lenders it didn’t break terms of its credit agreement, a month after Aurelius Capital Management LP claimed the former TXU Corp. defaulted on a loan.
The cost to protect Energy Future Holdings Corp. debt climbed on speculation over the outcome of hedge fund Aurelius Capital Management LP’s assertion that the power company is in default on a $23.9 billion loan.