Energy Future Holdings to drop interest payment on Friday
On Friday, Energy Future Holdings (EFH) plans to make a USD270 million interest payment. A number of industry analysts and creditors expected the besieged Texas power generator to file for bankruptcy and skip payment.
EFH's decision to pay is a critical step for restructuring. This move has given the company exactly six months to negotiate with potential creditors. However, reports claimed it may have angered senior bank lenders who had initially claimed EFH's residual assets.
Wall Street Journal reported that the premeditated payment would delay bankruptcy and evade default. EFH's next interest payments for bonds are due by May of 2014. EFH refused to comment on future plans.
Energy Future Holdings, created in October of 2007, has a total debt of USD29 billion. Several sources claimed creditor factions are still on the fence with terms of restructuring.
Even if the interest payment has been made, talks have not died down.