Moody’s: Bankruptcy of TXU Energy’s parent company is imminent

[TexasTowelie]

The bankruptcy of Texas Competitive Electric Holdings, owner of retail electricity provider TXU Energy and power generator Luminant, is imminent, Moody’s analysts projected in a report this week.

The power company could run out of money before the year’s end, soon followed by the bankruptcy of its parent, Energy Future Holdings, said Moody’s analyst Jim Hempstead.

The staggering debt is a legacy of a massive $45 billion leveraged buyout in 2007 — one of the largest in history — by Kohlberg Kravis Roberts & Co., TPG Capital and Goldman Sachs Capital Partners.

Energy Future Holdings and its subsidiaries currently have more than $40 billion in debt. Of that, subsidiary company Texas Competitive Electric Holdings owes $30 billion and has a value of about $15 billion.

More at http://fuelfix.com/blog/2013/09/10/moodys-bankruptcy-of-txu-energys-parent-company-is-imminent/ .

[font color=green]A victim of the plunge in natural gas prices. While I never liked TXU with their outrageous rates, I do sympathize for the employees of the company.[/font]

[mbperrin]

1. Hmm, what could go wrong with taking HUGE debt out on a volatile

commodity-dependent business?

Yes, I do feel sorry for the employees themselves, but their rate was triple what I ended up paying after dumping them.