Energy Future Holdings Corp., the power company that went private in a record $45 billion buyout only to say last month that it could go bankrupt, is facing a new headache as a unit's creditors have filed a $725 million lawsuit to recover unpaid interest, Reuters reported yesterday. Affiliates of the hedge fund Aurelius Capital Management LP sued seven current and former Energy Future Competitive Holdings Ltd directors, saying that they improperly let the parent once known as TXU Corp. be repaid billions of dollars of fraudulent intra-company loans without ensuring full payment to creditors. Aurelius accused Energy Future Chief Executive John Young and the other directors of showing a "demonstrated indifference" to creditors stemming in part from conflicts of interest, and said that these directors should pay the interest owed.
