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.
KKR & Co. and TPG Capital’s best chance for salvaging their failing $48 billion purchase of Energy Future Holdings Corp. in the biggest leveraged buyout ever may hinge on $1.48 billion of junior bonds.
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.
Energy Future Holdings Corp.’s decision to make a $270 million interest payment buys the Texas power producer as much as five extra months out of bankruptcy while inciting the ire of lenders who lose that money in a recovery.
For the first time, Texas is connecting most of its wind farms to its largest cities. That’s bringing cheap electricity into the service area of Energy Future Holdings Corp., bad news to holders of $32 billion of the power company’s debt from the biggest-ever leveraged buyout.
Energy Future Holdings Corp. may violate a debt covenant by the end of this year, potentially allowing for secured creditors to force a default and take over its power generation and retail units, according to debt researcher CreditSights Inc.