Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Energy Future to Pay $97 Million in Fees for 2-Year Loan

Energy Future Holdings Corp. will pay lenders including Deutsche Bank AG as much as $97 million to borrow $5.4 billion for two years to finance the Texas power producer’s reorganization in bankruptcy.

The company, which has said it intends to leave bankruptcy in 11 months, didn’t explain in a court filing why it was willing to pay more fees to obtain the loan for 13 extra months. Pacific Investment Management Co. is a backstop lender for the loan, according to the filing yesterday in U.S. Bankruptcy Court in Delaware.

Allan Koenig, a spokesman for Energy Future, didn’t immediately respond to an e-mail seeking comment on terms of the financing, known as a debtor-in-possession, or DIP, loan.

The Dallas-based electricity provider, taken private seven years ago by Henry Kravis and David Bonderman in a record $48 billion leveraged buyout, filed for bankruptcy this week after negotiating a restructuring deal among creditors, owners and management.

Junior bondholders including Marathon Asset Management LP are seeking to derail the plan, calling it the result of conflicts of interest and an attempt to erase “billions in legitimate creditor claims,” according to court papers.

The $97 million in lender fees excludes undisclosed commitment fees and an unspecified amount to secure a refinancing of higher-interest debt, which Energy Future said would save it $13 million a month.

Energy Future is asking the bankruptcy judge to let it file details of all key fees under seal, saying a clause in its correspondence with lenders would allow them to charge more if the information was published.

The case is Energy Future Holdings Corp., 14-10979, U.S. Bankruptcy Court, District of Delaware (Wilmington).

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.