Jan 24 KKR & Co's Marc Lipschultz has
resigned from the board of directors of Energy Future Holdings,
the embattled power giant taken private by KKR and others in a
massive 2007 leveraged buyout.
In a U.S. Securities & Exchange Commission filing on Friday,
EFH said Lipschultz notified the board on Jan. 17 of his
resignation "effective immediately."
Two other KKR representatives, Jonathan Smidt and Brandon
Freiman, remain as members of EFH's 13-member board.
EFH for months has been trying to restructure about $40
billion in debt with various classes of creditors. The company
may face bankruptcy, though it is in the midst of negotiations
with creditors on a consensual restructuring.
A key question in the negotiations is how much equity value,
if any, KKR and its fellow equity owners will retain in the
restructured EFH. KKR, TPG Capital Management and
Goldman Sachs' private equity arm led the consortium that
created EFH through a $45 billion buyout of Dallas-based TXU
Corp, the largest-ever leveraged buyout.
Lipschultz, who had been on the board since the buyout, did
not give a reason for his departure, and no replacement has been
named, an EFH spokesman said on Friday.
A spokeswoman for KKR did not return a call seeking comment.