Energy Future Holdings Corp. creditor negotiations failed and the power producer seeking to restructure almost $44 billion in debt will make an interest payment due tomorrow, Bloomberg News reported yesterday. Talks fell apart after various creditor groups to the former TXU Corp. were unable to reach a consensus for a reorganization. The distribution of $270 million in bond coupons buys the Dallas-based company and its lenders at least several months to negotiate a fresh deal with broader support while also raising the specter that they’ll be unable to reach mutual terms. Investment firms from Avenue Capital Group LLC to Centerbridge Capital Partners LLC had been working since at least March on a bankruptcy plan for Energy Future, the target of a 2007 leveraged buyout that was the largest ever. Secured lenders didn’t want the coupon payments made as the funds go to more junior creditors.
