EFH Highlights Pitfalls For Large-Enterprise Fiduciaries

Law360, New York (January 6, 2015, 2:44 PM EST) -- Energy Future Holdings, formerly known as TXU Corp., an energy company centered in Texas, was taken private in 2007 in the largest leveraged buyout transaction that has ever taken place. The deal was largely predicated on an anticipated rise in natural gas prices; when prices instead plummeted, the company, which had borrowed nearly $40 billion, was left with a massively unbalanced capital structure. The Chapter 11 cases of EFH and its subsidiaries commenced last year have been proportionately contentious and complex....

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