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KKR to Goldman Skirmish for Scraps as LBO Bankruptcy Looms

KKR & Co., Goldman Sachs Capital Partners and TPG Capital, the firms that led the $48 billion buyout of Energy Future Holdings Corp. in 2007, are fighting to receive barely 3 percent of their initial investment when the power generator files for bankruptcy as soon as this month.

Negotiations with senior creditors including Leon Black’s Apollo Global Management LLC and Centerbridge Capital Partners LLC, which are poised to seize control of the former TXU Corp., are at a crucial juncture today when agreements that allow them to view nonpublic information to foster talks expire. A proposal disclosed last week that wasn’t accepted would have given the company’s owners as little as $270 million.