Energy Future Holdings

About Energy Future Holdings

Energy Future Holdings, formerly TXU, filed for Chapter 11 bankruptcy on April 29, 2014. EFH had 40 billion in debt, making it one of the largest bankruptcies in US history. The company was created in the 2007 leveraged buyout of TXU by KKR, TPG Capital, and Goldman Sachs for 45 billion, the largest LBO in history at the time. Natural gas prices fell dramatically, reducing electricity prices and making the LBO assumptions untenable. The KKR TPG Goldman group lost its entire 8 billion equity investment. EFH was split into two companies: Oncor, the regulated transmission business, and Energy Future, the competitive generation business. Oncor was acquired by Sempra Energy. The case was one of the most costly private equity failures.