This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Energy Future Pursues Restructuring After Debt Payments Miss

Stocks in this article: GS

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).

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.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs