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.
- Get Smarter About Your Energy Procurement Data Book
- 2015 Insider Knowledge
- 2016 Energy and Sustainability Predictions Findings from Facilities Professionals
- 10 Tactics of Successful Energy Managers
- The Corporate Sustainability Professional's Guide to Better Data Management
- eBook: Five Key Considerations for Integrating Renewables into Your Procurement Strategy
- Four Key Questions to Ask Before Your Next Energy Purchase
- Improve Occupant Comfort & Reduce Energy Costs Through Humidity Control
- Top 10 Steps for a Successful EMIS Project
- Advanced Rooftop-Unit Control (ARC) Retrofits: Field Demonstrations Validate Energy Savings