TXU Has Trouble Restructuring Its Debt

Posted on August 7th, 2009 12:51pm by Tim Rogers
Filed under Business

An alert FrontBurnervian points us to this NYT DealBook story about TXU’s financial maneuverings. Short version: when KKR took TXU private and formed Energy Future Holdings, it was the largest leveraged buyout ever. That leverage was $44 billion of debt. Now they’d like to restructure it. But some of their lenders aren’t so sure about all that. Is this a big problem for TXU? Naw. Not at all. Right?

5 comments

Just $44? I think I have that in my piggy bank.

Tom @ 1:01 pm on August 7, 2009
Thanks, Tom. Fixed.

Tim Rogers @ 1:24 pm on August 7, 2009
Is this “alert FrontBurnervian” wealthy, is he a F.O.W. and does he have a financial stake in TXU?

frank-ly @ 2:23 pm on August 7, 2009
Frank-ly:

As I understand it, the answers to your posed questions are (i) yes, (ii) yes and (iii) no, as said “alert Frontburnian” is massively short TXU.

Incognizant @ 10:45 am on August 8, 2009
But observe that the interim deal did get completed:

http://dealbook.blogs.nytimes.com/2009/08/07/txu-loan-amendment-passes-despite-lender-objections/

This saga is gonna be a mess, however.

Incognizant @ 10:50 am on August 8, 2009

FrontBurner® launched in March 2003, the first blog in Dallas run by a media organization. This is where the editors of D Magazine come to waste a tremendous amount of time.

Subscribe via RSS (What is RSS?)