March 26 Texas power generator Energy Future
Holdings Corp is making a last ditch effort to reach
a debt-restructuring deal with creditors before it seeks
bankruptcy protection, the Wall Street Journal said, quoting
sources familiar with the matter.
Energy Future (EFH) is expected within weeks to receive an
auditor's opinion that it cannot survive as a going concern,
which would trigger a default on its loans.
Reuters has reported that people close to the case expect
the company to file for Chapter 11 as soon as this month to
avoid the default.
The Journal said EFH could ask regulators for an extension
to file its annual report that could contain the "going concern"
clause, to buy more negotiating time and possibly push any
bankruptcy filing to the end of April. (r.reuters.com/ryx87v)
EFH, formerly TXU Corp, was the largest generator in Texas,
before a $45 billion buyout in 2007.
The largest-ever leveraged buyout, by a consortium that
included private equity firms KKR & Co, TPG Capital
Management LP and a unit of Goldman Sachs Group Inc
, saddled the company with more than $40 billion in debt
just before a sharp decline in natural gas and wholesale power
The company operates the biggest transmission and
distribution network in Texas.
(Reporting by Sayantani Ghosh in Bangalore)