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Energy Future no longer in talks with some creditors

16 Oct 2013

oil oil_lrgSome of private equity-backed power group Energy Future’ creditors have ended talks with the company, which is trying to secure a deal to restructure its debt pile.

Energy Future Intermediate Holdings, which is a subsidiary of Energy Future, revealed in a regulatory filing that it is no longer in negotiations with its unsecured bondholders.

Earlier this month it was reported that Energy Future was close to securing a loan of over $3bn ahead of a bankruptcy filing.

Citigroup, JP Morgan Chase, Bank of America and Morgan Stanley were said to have agreed to provide part of the debtor-in-possession funding.

One of the company’s creditors has hired advisers to explore restructuring options before a $250m bond payment deadline on 1 November.

The company was known as TXU Corp when the trio of firms bought it in a $43.2bn deal at the peak of the buyout boom, loading it with about $35bn of debt in the process.

About 95 per cent of the consortium’s investment in TXU has been written off since the deal, while a regulatory filing last June showed the company’s debt to EBITDA ratio was 9.5 times.

Earlier in 2013 Energy Future’s lenders turned down a proposed $32bn debt restructuring plan for being too lenient on the company’s private equity owners.

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