Report: Energy Future Holdings will make debt payment
Dallas-based Energy Future Holdings will make a $270 million debt payment scheduled for Friday rather than file for Chapter 11 bankruptcy, The Wall Street Journal reported. Citing unnamed sources, the newspaper said the former TXU Corp. likely wouldn't face another decision on bankruptcy uptil early next year. EFH has more than $1.3 billion, but there had been speculation that creditors preferred that the company not make the payment to bondholders and instead retain the money for distribution during bankruptcy. The company doesn't face another significant repayment until October 2014, but it could receive a qualified opinion from its auditors early next year, which could put it in default of loan covenants. A link to the story is here.
-- Jim Fuquay