Texas power company Energy Future proposes prepackaged bankruptcy

 April 15 | Mon Apr 15, 2013 6:16pm EDT

April 15 (Reuters) - Texas power company Energy Future Holdings has proposed a prepackaged bankruptcy that would restructure $32 billion of debt, but no deal has been reached, the company said on Monday.

Energy Future, taken private in 2007 in the largest-ever leveraged buyout, said in a U.S. Securities & Exchange Commission filing that it has proposed the restructuring deal to creditors that would exchange secured creditors' claims for a combination of equity and new debt.

"The principals of the companies and the creditors are currently not engaged in ongoing negotiations," Energy Future said.

It noted, however, that creditors have conveyed they would consider the restructuring if it increased distributions and better compensated them for the risk of exchanging their claims for equity.

Energy Future, formerly TXU Corp, is Texas' largest power generator, and is trying to restructure more than $30 billion in debt after a buyout viewed as a spectacular failure.