Sunday, 1 February 2015
Last updated 2 days ago
Apr 29 2014 | 12:49pm ET
One of the biggest private-equity deals in history has become one of the biggest bankruptcies of all time.
Energy Future Holdings today filed for Chapter 11 bankruptcy, citing a debt load of more than $49 billion against assets of $36.45 billion. The Dallas-based company was set to miss more than $100 million in debt payments this week.
The move comes seven years after Kohlberg Kravis Roberts, Texas Pacific Group and Goldman Sachs took EFH, then known as TXU Corp., private in a $32 billion buyout. The deal soured when natural gas prices hit the skids, and the three have since written off most of their investments.
EFH plans to hand over its Texas Competitive Electric Holdings unit in exchange for lenders forgiving about half of its debt. TCEH sells power on wholesale markets. The company has been in talks with creditors for months.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…