Bankruptcy won’t turn off lights for TXU customers
HOUSTON — Dallas-based Energy Future Holdings is hovering on the brink of bankruptcy. But should it tumble, the lights will continue to shine for Houston customers.
Ballooning debt of more than $40 billion could push the Texas power company into bankruptcy restructuring, but it would allow the company to keep its operations intact, according to Allan Koenig, vice president of corporate communications for Energy Future Holdings. That includes its retail branch, TXU Corp., which is a major power provider to residents across Houston and the state.
“Any potential bankruptcy filing would be a reorganization of our debt, not our operations,” Koenig said. “There would be zero change to TXU customers in the event of a bankruptcy filing.”
The bankruptcy would be one of the largest non-financial corporate bankruptcies in the U.S. since the 1980s, according to Moody’s — a list that also includes Enron, WorldCom and Chrysler. It would be structured as a Chapter 11 bankruptcy, in which the debt is restructured but the company continues its normal operations. The holding company is estimated to have more than $41 billion in debt on its books.
More at http://fuelfix.com/blog/2014/02/21/bankruptcy-wont-turn-off-lights-for-txu-customers/?cmpid=hpts .