Formerly known as TXU Corp, Energy Future Holdings has presented a pre-formatted bankruptcy case that would restructure its debt of $32 billion but no agreements have been finalized according to the company last Monday.
Privatized in 2007 as the biggest sale on record, Energy Future has informed the U.S. Securities and Exchange Commission through a filing proposing a streamlined deal to its creditors that would trade secured creditors' claim for a combination of new debt and share of stocks.
Energy Future in a statment said, "The principals of the companies and the creditors are currently not engaged in ongoing negotiations." Creditors said that it would consider the restructuring if returns were worth the risk of taking new equity.
Energy Future is exerting all efforts to restructure more than $30 billion of debt that weighed down the company after the buyout of a group including Goldman Sachs Group Inc's private equity arm, KKR & Co and TPG Capital Management. The buyout of TXU of $45 billion which has added to the company's downward spiral was seen to be one of the biggest failures in the last ten years of the buyout boom.
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