Strapped electric utility spending millions on bonuses, investor payments
Posted Monday, May. 28, 2012 FW Star Telegram
DALLAS -- Private-equity investors who bought Dallas-based electric utility TXU Corp. five years ago now see the company worth less than the $45 billion they paid and mired in debt.
Nevertheless, the company, now called Energy Future Holdings, is making multimillion-dollar retention bonus payments to executives and cash payments to private-equity holders, The Dallas Morning News reported.
Warren Buffett recently apologized to Berkshire Hathaway shareholders for spending about $2 billion on Energy Future bonds, which are now worth about $878 million, and conceded even that could be wiped out.
Private-equity firm KKR has written down its Energy Future investment's value by 95 percent.
