Chances are growing slim for Texas utility Energy Future Holdings to negotiate a prepackaged bankruptcy with its creditors that would avoid a lengthy spell in chapter 11, Reuters reported yesterday. The embattled company has been in talks for months with secured lenders, which hold about $20 billion in debt. But with interest payments of about $250 million due on Nov. 1 and with several key creditors yet to sign nondisclosure agreements, time is running out to reach a prepackaged restructuring. The company still hopes to establish at least the framework of an agreement before any chapter 11 filing. The company, which has about $1.6 billion on hand, could also choose to make its Nov. 1 payment and extend the discussions, although the sides reportedly would like to agree on a deal before then.
