Texas Utility Prepares for Bankruptcy
Energy Future Holdings, a Dallas-based, privately-held energy provider, is preparing to file for bankruptcy, according to Reuters.
EFH’s competitive businesses consist primarily of TXU Energy and Luminant. Its regulated operations consist of Oncor.
EFH is lining up a $9 billion Debtor-In-Possession (DIP) loan before an imminent Chapter 11 bankruptcy filing, reports Reuters, adding that the deal will be the largest-ever, privately-funded bankruptcy financing.
EFH represents the transformation of TXU Corp. into a private company. A group of investors led by Kohlberg Kravis Roberts & Co., TPG and Goldman Sachs Capital Partners completed the acquisition of TXU in October 2007. The company has struggled with its debt load ever since going private.
In addition to competitive retail electricity, TXU Energy offers energy efficiency options and renewable energy programs. Luminant has more than 15,400 MW of generation, including 2,300 MW fueled by nuclear power and 8,000 MW fueled by coal. The company is one of the largest purchasers of wind-generated electricity in Texas and the nation.
The only DIP bigger than the proposed $9 billion EFH privately-funded financing is the $33 billion DIP provided to General Motors by the United States Treasury in June 2009, says Reuters.
- Choosing the Correct Emission Control Technology
- 2015 Insider Knowledge
- The Missing Puzzle Piece: Automated Utility Data Aggregation
- 10 Tactics of Successful Energy Managers
- Just the Facts: 8 Popular Misconceptions about LEDs & Controls
- Planning for a Sustainable Future
- There’s Money in the Trash
- 6 for 2016: Global Energy Market Trends
- Addressing Regulatory Trends with UVC LED-based Sensors
- Energy Manager Today Awards Top Products and Top Projects of the Year