Moody’s Investors Service said that investors in Energy Future Holdings Corp.’s debt may get less of their money back than comparable restructurings when the power company that was the target of the biggest leveraged buyout in history files for bankruptcy this year, Bloomberg News reported yesterday. There’s a high probability that the electricity provider taken over in a $48 billion deal in 2007 led by KKR & Co., TPG Capital and Goldman Sachs Capital Partners “will announce a material restructuring in the fourth quarter,” probably giving investors across the company a recovery of about 50 percent, Moody’s analysts said. Holders of the senior secured first-lien notes from Energy Future Intermediate Holding and Texas Competitive Electric Holdings Co., the parent’s deregulated unit, may recover 68 percent and 63 percent, respectively, while senior unsecured lenders at Texas Competitive and the parent “would be pretty much wiped out,” recovering as little as 4 percent, according to Moody's analysts.
