By James Osbornejosborne@dallasnews.com12:25 pm on April 28, 2014
The board of Energy Future Holdings voted Monday to file for Chapter 11 bankruptcy protection after reaching a tentative deal with some of the company’s creditors, according to sources close to the situation.
The company will file in Delaware federal court, but the timing remains in flux, a source said Monday night.
The company has been locked in negotiations with creditors for weeks in hopes of working out a final hour debt restructuring deal that minimizes the power company’s time in court.
The former TXU Corp. was bought out for $45 billion in 2007 by the private equity firms KKR & Co., TPG and Goldman Sachs Capital Partners. But Texas power prices are half what they were in 2008. And EFH has struggled to keep up with $25 billion in additional debt loaded on the company at the the time of the buyout, the largest in U.S. history.
The largest power generator in Texas now owes close to $40 billion. Its creditors include investors like Leon Black, CEO of Apollo Global Management, and Warren Buffett, CEO of Berkshire Hathaway .