NEW YORK -(Dow Jones)- Energy Future Holdings Corp. is asking for concessions from creditors in exchange for upfront payments on its massive debt, as the beleaguered power generator looks to head off any escalation on a dispute over its treatment of a subsidiary.
The move follows an attack launched by activist hedge fund Aurelius Capital Management LP in February, which alleged that EFH was paying too little for money it has been borrowing from a subsidiary. It was an untimely accusation for EFH, which has been staging negotiations with its lenders to push upcoming debt payments further out into the further. EFH, formerly known as TXU, was taken private by KKR & Co. LP (KKR) and TPG Capital for $45 billion, the largest leveraged buyout ever.