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Sunday, 04/27/2014 8:47:10 AM

Sunday, April 27, 2014 8:47:10 AM

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EFH reportedly looks at two debt restructuring offers (4/25/14)

Energy Future Holdings Corp.’s directors met Thursday to consider two creditor proposals for reorganizing the power producer in bankruptcy, with or without the blessing of one of its biggest lenders, according to two people with knowledge of the talks.

The board is seeking a plan that would reduce the amount of time it takes to restructure the company’s $45.4 billion of debt in Chapter 11 proceedings. One of the plans wouldn’t include Fidelity Investments, which has been a key holdout, said the people, who asked not to be identified because the discussions are private.

The electricity provider formerly known as TXU Corp., which KKR & Co., TPG Capital and Goldman Sachs Group Inc.’s private-equity arm took private in 2007 in the largest-ever leveraged buyout, is racing to finish up the talks before May 1, when it would be considered in default, accelerating repayment of its obligations.

A bankruptcy blueprint would limit the chaos of a free-for-all filing and may allow the company to avoid triggering a tax bill that could exceed $7 billion.

Under terms being discussed, Fidelity would get almost 40 cents on the dollar in cash for notes it holds in the parent company of the power producer, one of the people said.

The Boston-based money manager had rejected a previous offer for a debt swap valued at 10 cents on the dollar, according to a Nov. 1 filing with the U.S. Securities and Exchange Commission.

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