Bankrupt power company Energy Future Holdings Corp received conditional court approval to accept bids for its majority stake in Oncor, a power transmission company in Texas worth billions of dollars.
Energy Future Holdings squared off against creditors in court on Friday as the bankrupt Texas power company sought approval to begin a multibillion dollar auction of its interest in Oncor, a power transmission business.
Energy Future Holdings planned to make coupon payments worth USD 270 million to creditors as a possible bankruptcy loomed.
Secured lenders at Texas Competitive Electric Holdings and unsecured bondholders at Energy Future Intermediate Holdings (EFIH) were in a deadlock about their confidentiality agreements due to Energy Future Holdings' USD250 bond debt payments due on November 1.
KKR & Co. and TPG may have to rely on US$1.48 billion junior bonds to offset failing TXU investment.
Energy Futures is seeking court intervention to dismiss the suit filed by Aurelius against the firm.