This Day On The Street
Continue to site
ADVERTISEMENT
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

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.

Must Read: BHP Billiton Mulls Assets Spinoff

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.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SYM TRADE IT LAST %CHG
GS $147.55 -1.10%
AAPL $94.45 -0.59%
FB $98.28 -1.50%
GOOG $675.26 -1.10%
TSLA $147.89 -0.07%

Markets

Chart of I:DJI
DOW 15,926.51 -100.54 -0.63%
S&P 500 1,841.72 -11.72 -0.63%
NASDAQ 4,250.7660 -32.9870 -0.77%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs