Texas utility group Energy Future Holdings is reportedly nearing a deal to secure one of the largest bankruptcy loans in history.
The company, which was taken private in the world’s biggest LBO deal in 2007, is negotiating a deal with several banks for two bankruptcy loans totalling at least $9bn, said Reuters, citing sources involved in the matter.
Energy Future was previously looking to secure an $8bn loan.
The debtor-in-possession loan is currently in the final stages of negotiation, said the sources.
Citigroup and Morgan Stanley are among at least six banks that are looking to provide funding for the deal, said the report.
KKR, TPG Capital and Goldman Sachs Capital Partners took the company private in the world’s biggest LBO deal in 2007, loading it with about $35bn of debt.
Last year the company’s lenders turned down a proposed $32bn debt restructuring plan for being too lenient on Energy Future’s owners.
Copyright © 2014 AltAssets