TXU Parent Provides Update on "Constructive" Restructuring Discussions with Financial Stakeholders

Energy Future Holdings, the parent of TXU Energy, yesterday provided an update on its "constructive" discussions with certain of its financial stakeholders about various restructuring alternatives, "to strengthen the company's balance sheet and create a sustainable capital structure to position it for the future."

"The company believes an agreement on a restructuring plan would minimize time and expense spent in a restructuring," EFH said.

While no agreement has been reached, and there is no guarantee that an agreement will be reached, negotiations are ongoing, EFH said.

These restructuring discussions contemplate implementing a reorganization under Chapter 11 of the U.S. Bankruptcy Code. Throughout a potential Chapter 11 reorganization, the company fully expects that it would continue normal business operations, including continuation of:

• "High levels of service to retail customers under the terms of their agreements."

• "Compliance with all regulatory obligations."

• "Employee wages and benefits."

• "Qualified retirement plans and medical benefits for retirees."

• "Payment in the normal manner for suppliers and vendors for all goods and services provided after the date of any potential filing."

The company is negotiating to secure access to additional financial resources to help support, among other things, its continued normal operating and working capital requirements and to facilitate its plans during a potential restructuring, EFH said.

"Given the constructive nature of the ongoing discussions, and although the company has available liquidity, the company has elected to not make interest payments on certain of its notes due on April 1. The debt agreements allow for a grace period to make these payments," EFH said.

In addition, the company has filed a Form 12b-25 with the U.S. Securities and Exchange Commission to automatically extend the time within which to file its annual report on Form 10-K for the year ended Dec. 31, 2013.