Energy Future Holdings Bankruptcy Plan Said to Almost Wipe Out Owners KKR, TPG, Goldman Sachs
KKR & Co., TPG Capital and Goldman Sachs Capital Partners, the firms that acquired Energy Future Holdings Corp. in the biggest-ever leveraged buyout, would be all but wiped out in a reorganization plan being discussed, said three people with direct knowledge of the negotiations.
The firms may accept as little as 1 percent of the equity in the company after it completes a Chapter 11 restructuring, said the people, who asked not to be identified because the talks are private. The pre-bankruptcy plan is being negotiated by the private-equity owners, the company’s management and holders of the power producer’s $45.6 billion of debt.
Energy Future is hashing out a proposal that would reduce the amount of time it takes to restructure in Chapter 11, limit the chaos of a free-for-all filing and allow the company to avoid a tax bill that could exceed $7 billion. Fidelity Investments, which is a key debtholder throughout the Dallas-based company’s capital structure and had been a holdout on the bankruptcy road map, moved closer last week to an accord.
Adam McGill, a spokesman for Energy Future, declined to comment, as did Tom Johnson, a spokesman for the private-equity sponsors at Abernathy MacGregor Group.
More at http://www.bloomberg.com/news/2014-04-01/energy-future-plan-said-to-almost-wipe-out-owners-kkr-to-goldman.html .
[font color=green]It would be ironic if Ted Cruz's wife was terminated from Goldman-Sucks and he lost his platinum health insurance plan--especially since the enrollment period for the ACA has closed. Let them see what it is like to have to pay COBRA rates for that great health insurance coverage![/font] 
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