EFH, formerly TXU Corp, was taken private by KKR, TPG Capital Management and Goldman Sachs’private equity arm in 2007 for $45 billion in the largest ever leveraged buyout.
EFH and subsidiaries shared with the creditors non-public information, including financial information, but have not reached an agreement on any change in the company’s capital structure, EFH said in a regulatory filing.
The company wants to finalize a restructuring plan before Nov. 1, when $250 million of bond payments are due. Filing for bankruptcy before Nov. 1 would suspend the payments, but filing without a restructuring plan could entail years of battles and competing restructuring plans in a bankruptcy court.
A “significant” creditor proposed a pre-negotiated restructuring of the company’s regulated subsidiary Energy Future Competitive Holdings Co’s nearly $32.2 billion debt, EFH said in the filing.
The proposal includes EFH’s $650 million of debt and unit Energy Future Intermediate Holding Co’s $7.6 billion of debt.
(Oct 15 (Reuters) – The story headlined “Energy Future signs agreements with creditors on the way to bankruptcy” was wrong and is withdrawn. There have not been developments that move the company closer to a pre-packaged bankruptcy. A substitute story has been published)