Utilities group Energy Future Holdings is reportedly close to securing bankruptcy loans totalling $9.7bn from a consortium of banks led by Citigroup and Deutsche Bank.
The loans will fund the company’s operations during a bankruptcy expected to be filed by Tuesday, said Reuters, citing two sources involved in the matter.
KKR, TPG Capital and Goldman Sachs Capital Partners took Energy Future private in world’s biggest LBO deal in 2007, loading it with about $35bn of debt. Last year the company’s creditors turned down a a proposed $32bn debt restructuring plan for being too lenient on its owners.
Energy Future plans to file for Chapter 11 protection by Tuesday with the debtor-in-possession loan in place whether or not it reaches a restructuring deal with its creditors before that time, said the report.
Citi is leading a $4.5bn loan for Energy Future’s unregulated merchant generation unit and Deutsche Bank is leading a $5.2bn loan for its regulated business, said the sources.
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