Reuters: Bankruptcy News: UPDATE 1-Some Energy Future creditors walk away from talks

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UPDATE 1-Some Energy Future creditors walk away from talks Oct 15th 2013, 16:01 Share this Email Print Reprints Tue Oct 15, 2013 12:01pm EDT NEW YORK Oct 15 (Reuters) - Some creditors of Energy Future Holdings (EFH) have stopped negotiating for now with the Texas power company as it looks to restructure its $40 billion of debt. Unsecured bondholders at Energy Future Intermediate Holdings (EFIH), the parent of Energy's Future's regulated subsidiary, are no longer engaged in ongoing discussions with the company and other creditors, according to a filing with U.S. regulators on Tuesday. The filing said that the EFIH creditors have directed their advisers to continue to work with the company to explore whether the parties can reach an agreement. EFH's creditors want to finalize a restructuring plan before Nov. 1, when $250 million in bond payments are due. Filing for bankruptcy before Nov. 1 would suspend the bond payments. Filing without a restructuring plan could entail years of battles and competing restructuring plans in bankruptcy court. EFH, formerly TXU Corp, was taken private in 2007 in a $45 billion buyout, the largest-ever leveraged buyout. The deal saddled the company with debt just before a sharp decline in natural gas prices and energy markets. The buyout consortium included private equity firms KKR & Co LP, TPG Capital Management LP and Goldman Sachs Group Inc's private equity arm. Secured lenders at Texas Competitive Electric Holdings, which represents Energy Future's unregulated subsidiary, and EFIH's unsecured bondholders had previously been in direct negotiations. The TCEH creditors have agreed to remain in negotaiations, according to the filing, as has a "significant creditor" who owns debt in various parts of the company's capital structure. The EFIH unsecured bonds dropped 5.5 points this morning to 56.5 upon release of the public filing, while Texas Competitive Electric Holdings bank debt traded up about half a point to 67.75. Link this Share this Digg this Email Reprints

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