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.
- How to Thrive in Today's EHS Landscape
- Combined Heat and Power
- 2015 Environmental Leader Product & Project Awards
- 2015 Insider Knowledge
- Improve Your Company's Environment and Energy Performance
- Migration to Mobile: The Evolution of EHS Management Tools
- Just the Facts: 8 Popular Misconceptions about LEDs & Controls
- Verdantix Green Quadrant for EHS Software
- Let's Do The Math for DR
- Best Practices in Electricity Procurement