TXU Bonds Plunge as Advisers Hired, Restructuring Approaches
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Bonds of the Texas electricity provider formerly known as TXU Corp. plummeted to the lowest level on record before a potential restructuring of the debt raised to fund the largest leveraged buyout in history.
The $1.83 billion of 10.25 percent bonds due November 2015 issued by Energy Future Holdings Corp.’s unregulated Texas Competitive Electric Holdings Co. fell 9.3 cents to 15 cents on the dollar at 8:58 a.m. in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. That’s the lowest level the notes have traded since they were issued in December 2008.