Energy Future Paves Way for Unit’s Bankruptcy: Corporate Finance
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An $850 million bond sale from Energy Future Holdings Corp. is paving the way for the power producer KKR & Co. and TPG Capital bought in 2007 for $43.2 billion to potentially put its unregulated unit into bankruptcy.
Proceeds from the sale, a portion of which was secured by the firm’s equity interest in Oncor Electric Delivery Co., will be used to repay a loan to Energy Future’s Texas Competitive Electric Holdings Co. Repayment allows the power producer to put Texas Competitive into bankruptcy without triggering defaults elsewhere in the company, according to Covenant Review LLC.