From The Dallas Business Journal
by Nicholas Sakelaris
As expected, Energy Future Holdings filed for Chapter 11 bankruptcy Tuesday, one day before it would have gone into default for missing a $109 million interest payment.
The $40 billion, prepackaged bankruptcy of Dallas-based EFH ranks among the largest in decades—a dramatic end for what was in 2007 the largest leveraged buyout in history.
“Our existing capital structure has become unsustainable,” EFH CEO John Young said in a statement. “We expect that, with the support of our financial stakeholders, our restructuring can proceed expeditiously as we seek to strengthen our balance sheet and position the company for the future.
The bankruptcy was filed in Delaware, where judges are familiar with large, complex cases, said Chris Ward, a bankruptcy attorney with the Polsinelli law firm. A motion has been filed to change the venue to North Texas.
He estimates the reorganization could take as little as two months.
“I know that this plan is on a very fast track,” Ward said. “All major constituents have agreed on the reorganization bankruptcy and plan to implement that strategy.”
To read the full article, click here