Energy Future Holdings

Representation as co-counsel of holders of second-lien debt in the chapter 11 case of Energy Future Intermediate Holdings in the District of Delaware. The debtor was a subsidiary of Energy Future Holdings formerly known as TXU, the Texas utility company in one of the largest, complex and expensive bankruptcies in history. EFH was created in 2007 when private equity firms KKR and TPG Capital and Goldman Sachs acquired TXU Energy and its affiliated companies, Oncor and Luminant Energy, for $42 billion in the largest leveraged buyout in U.S. history. The economy fell into a recession in 2009, and the price of natural gas plummeted as the result of increased production from fracking. EFH found it difficult to service its debt loan and filed for chapter 11 in April 2014 along with 70 affiliate companies. The firm guided the second lien debt holders through difficult and complex issues through several years during the chapter 11 cases, which eventually culminated in approval of EFH’s restructuring plan in February 2018.