The creditors of Energy Future Holdings remain at odds over how to split the Texas power company's equity in an expected bankruptcy as their confidentiality agreements lapse, Reuters reported yesterday. Secured lenders at Texas Competitive Electric Holdings, which represents Energy Future's unregulated subsidiary, and unsecured bondholders at Energy Future Intermediate Holdings, Energy's Future's regulated subsidiary, had previously been in direct negotiations. But the EFIH unsecured bondholders have so far been reluctant to re-sign confidentiality agreements. If they do not re-sign the confidentiality agreements, the creditors and the company will make public details of their talks in a filing with the U.S. Securities and Exchange Commision as early as today. The company, saddled with $40 billion of debt, wants to finalize a restructuring plan before Nov. 1, when $250 million in bond payments are due. Filing for bankruptcy before Nov. 1 would suspend the bond payments; but filing without a restructuring plan could entail years of battles and competing restructuring plans in bankruptcy court.
