NEW YORK (Reuters) - Some creditors of Energy Future Holdings (EFH) have stopped negotiating with the Texas power company as it looks to restructure its $40 billion of debt.
According to a filing with U.S. regulators on Tuesday, unsecured bondholders at Energy Future Intermediate Holdings (EFIH), the parent of Energy’s Future’s regulated subsidiary, are no longer engaged in ongoing discussions with the company and other creditors.
EFH’s creditors want to finalize a restructuring plan before November 1, when $250 million in bond payments are due. Filing for bankruptcy before November 1 would suspend the bond payments; but filing without a restructuring plan could entail years of battles and competing restructuring plans in bankruptcy court.
EFH, formerly TXU Corp, was taken private in 2007 in a $45 billion buyout, the largest-ever leveraged buyout. The deal saddled the company with debt just before a sharp decline in natural gas prices and energy markets.
Reporting by Michael Erman