According to several sources who were familiar with the dealings on Monday, creditors of Energy Future Holdings remained in a disagreement over the sharing of the company's equity in the midst of a predictable bankruptcy. Confidentiality agreements of secured lenders at Texas Competitive Electric Holdings and unsecured bondholders at Energy Future Intermediate Holdings (EFIH) had lapsed and had been in direct negotiations previously to arrange a new set of agreements. EFIH, representing Energy's Future's regulated subsidiary, was unsure about signing the new confidentiality agreements, said one of the sources.

Energy Future was a publicly-held company before taken private in 2007 for USD45 billion. The largest leveraged buyout and a succeeding decline in natural gas prices and energy markets had saddled the company with USD40 billion of debt. The energy company's capital structure currently has over USD32 billion in debt at its holding company of unregulated retail and merchant power units, and senior and junior debt of USD7.7 billion at the parent of its regulated power distribution business Energy Future Intermediate Holding Company LLC.

Payment of USD250 million in bond debt would be due on November 1, and Energy Future reportedly would want to finalize a restructuring plan by then. Should creditors refuse to sign the agreements, both Energy Future and the creditors would have to make their plans public as early as Tuesday with a U.S. Securities and Exchange Commission filing, said the anonymous sources.