NEW YORK Feb 7 U.S. power company Energy Future
Holdings (EFH), once known as TXU Corp, has hired legal advisors
Kirkland & Ellies to lay the groundwork for a potential
restructuring, Debtwire reported on Thursday, citing three
sources familiar with the matter.
According to the Debtwire report, Kirkland is currently
helping the company look at ways to lighten its debt load.
TXU Corp was taken over in 2007 by private equity for more
than $40 billion, including debt, in the largest ever leveraged
buyout. The deal was led by buyout firms KKR & Co and
TPG Capital Management.
Energy Future Holdings is now struggling under a heavy debt
load as natural gas prices have fallen sharply since 2007.
The TXU takeover was built on hopes that natural gas prices
would stay high. But they have instead fallen sharply since the
deal was announced, with benchmark U.S. prices dropping around
56 percent to around $3.28 per million British thermal units
from around $7.50 per mmBtu in February 2007.
That's bad for power companies in Texas where power prices
generally track natural gas prices.
EFH declined to comment on the Debtwire report. Kirkland did
not respond to calls for comment.