Energy Future will pay creditors USD270 million in coupons to avoid bankruptcy
According to two anonymous sources who told Bloomberg, Energy Future Holdings Corp would be making interest payments worth USD270 million to its creditors. The sources said the Texas-based power producer's board planned to pay in coupons to its junior bondholders should no agreements would be reached. The company's board could still decide to skip payment until tonight. Should Energy Future fail to comply, the company would be given a 30-day grace period to either release the release the funds of file for bankruptcy, said one of the sources.
Energy Future is still in talks with its creditors on how they could restructure the company's debt and how the ownership of the company will be divided. One of the sources added that a confidentially agreement exist between Energy Future and its investors. The agreement would grant investors access to Energy Future's private information. The source said the agreement lapsed today.
Adam McGill, Energy Future spokesperson, had not returned Bloomberg's phone calls for comments.