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Energy Future Pursues Restructuring After Debt Payments Miss

Energy Future Holdings is being advised on its restructuring by Kirkland & Ellis LLP and Evercore Partners Inc. Rick Cieri and Edward Sassower are leading the legal team at Kirkland & Ellis. Roger Altman is helming the financial advisory contingent from Evercore Partners.

First-lien lenders are being advised by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Millstein & Co. The Millstein group working on the restructuring includes CEO Jim Millstein, vice president Adam Preiss, managing director Elizabeth Abrams and partner Jane Vris.

Tim Coleman and Steven Zelin, senior managing directors at Blackstone Group LP, are assisting the private equity group, which is also being advised by legal counsel Richard G. Mason and Austin T. Witt at Wachtell, Lipton, Rosen & Katz.

According to SEC filings, the company had $763 million in cash on its balance sheet as of March 25.

If Energy Future Holdings fails to make up the missed interest payments by the end of the grace period and doesn't file for bankruptcy protection by then, the company would default on the debt and it would become payable immediately if at least 30% of the noteholders agree.

If Energy Future Holdings defaults on its debt, the repayment of $22.635 billion in secured debt and $5.237 billion in unsecured notes would also be accelerated.

On Monday, Energy Future Holdings also failed to file its annual report on time. The company noted that the annual report will contain a warning raising substantial doubt about the company's ability to continue as a going concern due to its anticipated problems repaying debt obligations due in 2014.

A company spokesman declined to comment.

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