NEW YORK Feb 7 U.S. power company Energy Future
Holdings (EFH), once known as TXU Corp, has hired legal and
financial advisors to lay the groundwork for a potential
restructuring, according to a source familiar with the matter.
According to the source, Energy Future Holdings has hired
law firm Kirkland & Ellis and financial advisor Blackstone Group
LP to advise the company on ways to deal with its heavy
TXU was taken over in 2007 by private equity for around $45
billion, including debt, in the largest ever leveraged buyout.
The deal was led by buyout firms KKR & Co and TPG
The source spoke on the condition of anonymity because the
matter is confidential.
Debtwire previously reported that EFH had hired Kirkland &
Ellis, while the Wall Street Journal reported that Blackstone
had been hired.
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 slumped 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 and
Blackstone did not respond to calls for comment.