By Michael Erman and Billy Cheung
NEW YORK, Oct 14 (Reuters) - The creditors of Energy Future Holdings remain at odds over how to split the company's equity in an expected bankruptcy as their confidentiality agreements lapse, according to several sources familiar with the matter.
Secured lenders at Texas Competitive Electric Holdings, which represents Energy Future's unregulated subsidiary, and unsecured bondholders at Energy Future Intermediate Holdings (EFIH), Energy's Future's regulated subsidiary, were in direct negotiations previously. But the EFIH unsecured bondholders have so far been reluctant to resign confidentiality agreements, according to one of the sources.
If they don't resign confidentiality agreements, the creditors will make public the details of their talks in a filing with the Securities and Exchange Commision as early as tomorrow, the sources said.
EFH, saddled with $40 billion of debt, wants to finalize a restructuring plan before $250 million worth of bond payments are due on Nov. 1. 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.
EFH, formerly TXU Corp, was taken private in 2007 in a $45 billion buyout, the largest-ever leveraged buyout. The deal saddled the company with debt just before a major decline in natural gas prices and energy markets.
The buyout consortium included private equity firms KKR & Co LP, TPG Capital Management LP and Goldman Sachs Group Inc's private equity arm.
EFH's capital structure includes more than $32 billion of debt split up into various categories at the holding company of its unregulated retail and merchant power units, and another $7.7 billion in senior and junior debt at Energy Future Intermediate Holding Company LLC (EFIH), the parent of its regulated power distribution business, Oncor Electric Delivery Company.