“The private equity Masters of the Universe are in a royal jam in Texas.
It seems that Texas Pacific Group and Kohlberg Kravis Roberts have jammed so much debt down the gullet of a Texas utility, the company is having difficulty making its bond payments. Texas Pacific and KKR bought TXU Corp. for $45 billion.
Typically, they used little of their own money. Since they did the deal, TXU’s debt has gone from $11 billion to $36 billion, $22.5 billion of which matures by 2014.”