NEW YORK ( The Deal) -- Affiliates of private equity-backed Energy Future Holdings Corp. missed $119.3 million in interest payments due on its debt on Tuesday as the electricity provider works toward a prenegotiated bankruptcy filing.
The Dallas-based company is unlikely to reach a deal for a prepackaged Chapter 11 filing but is aiming toward a prearranged or prenegotiated filing, according to a source who asked not to be named.
Energy Future Holdings has lined up $4.475 billion in debtor-in-possession financing for affiliate Texas Competitive Electric Holdings Co. LLC and another $5.2 billion in DIP financing for affiliate Energy Future Intermediate Holding Co. LLC, a filing with the Securities and Exchange Commission disclosed on Monday.
On Tuesday, Texas Competitive Electric Holdings missed a $50.3 million interest payment due on its 11.5% senior secured notes due Oct. 1, 2020, as well as a $58.9 million interest payment due on its 15% senior secured second-lien notes due April 1, 2021, and its 15% senior secured second-lien notes due April 1, 2021, Series B.The affiliate has 30 days to make up the missed payment. Texas Competitive Electric Holdings owes $1.75 billion on the 11.5% senior secured notes and $1.571 billion on the second-lien notes, SEC filings said. In addition, Texas Competitive Electric Holdings didn't make a $10.1 million interest payment, also due Tuesday, on various pollution control revenue bonds, on which $289 million is outstanding. A 60-day grace period exists to make up the missed payment on the bonds, SEC filings said. In a statement Monday, Energy Future Holdings said that it was in ongoing negotiations "with certain of its financial stakeholders about various restructuring alternatives to strengthen the company's balance sheet and create a sustainable capital structure to position it for the future." An agreement, however, hasn't yet been reached. Formerly known as TXU Corp., Energy Future Holdings is owned by a group of private equity firms that includes Kohlberg Kravis Roberts & Co. LP, TPG Capital and Goldman, Sachs & Co. (GS - Get Report). KKR, TPG and Goldman paid about $32 billion in equity and assumed about $13 billion in debt in the deal to acquire the company. When the $45 billion deal was announced in 2007, it was the largest leveraged buyout at the time.