March 26 (Reuters) - 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 prices.
The company operates the biggest transmission and distribution network in Texas. (Reporting by Sayantani Ghosh in Bangalore)