Dallas Bankruptcy: Could Energy Future Holdings Go Bankrupt?

: Chris Lee Law Firm

  Filed under: News

Energy Future Holdings (EFH) electrified headlines this week as rumors grew that the company might file for a Dallas bankruptcy. In its annual report filed with the Securities and Exchange Commission, EFH warned about their financial restrictions and limited flexibility, and that any unexpected breach could result in a default of their debt agreements.

Energy Future Holdings Seeks Future

Since three buyout firms including Texas Pacific Group and Kohlberg Kravis Roberts & Co. performed what was hailed as the largest buyout in history, EFH has struggled to pay back its $52 billion debt. The energy company says any forced acceleration on its payments could result in a Dallas bankruptcy. In the case of a default, they would seek protection or to liquidate their assets.

To avoid a Dallas bankruptcy, EFH has sought the expertise of bankruptcy attorneys with years of experience. EFH has hired Kirkland & Ellis and Blackstone Group LP for guidance on paying back their outstanding debt load. If EFH can continue repaying the $52 billion they owe, they hope to avoid dealing with a bankruptcy attorney and prevent bankruptcy, liquidation, or insolvency.

An EFH Dallas bankruptcy could have a potentially large thumbprint on the economy, as it is the largest power generator in Texas. Luminant owns over 15,000 megawatts of nuclear, coal, and gas-based power plants. To put this into perspective, Iraq’s nationwide consumption peaked at 15,000 MW in 2011.

Are you a candidate for bankruptcy?
Would you like to find out if bankruptcy is the right option for you? Try our Free Online Bankruptcy Evaluation. 4 easy steps to see if bankruptcy could be the right option for you!
  • Step 1
  • Step 2
  • Step 3
  • Step 4
Please Select Each Box That Applies To You
Creditor Harassment
Loss of Income
Disability or Illness
Current Expenses
Auto Loans
Credit Cards
Medical Bills
Payday Loans
Do you have any additional information you would like to share?
Contact Information