Little TXU activity seen despite reported creditor squabbling

By Paul Deckelman

New York, Oct. 15 - There was little reported early trading Tuesday in the bonds of various entities linked to Texas utility operator and merchant power generator TXU - despite a Wall Street Journal article warning that prospects for a streamlined bankruptcy process for the company were "thrown into doubt on Monday, after creditors failed to agree on how to rework the company's finances."

A market source said that the Trace bond tracking service had shown only about $4 million of trading in Energy Future Intermediate Holdings Corp.'s 10% notes due 2020 as of 10:40 a.m. ET, with the bonds hanging around the same 106 bid level seen on Friday.

The source said that there had been no trades in Texas Competitive Electric Holdings Co. LLC's 15% notes due 2021, which were last seen trading on Friday around 70 bid.

A trader pegged the company's 11¼% notes due 2018 at 56 bid, 59 offered.

The Journal reported late Monday that more than a dozen creditors and Energy Future's owners "are trying to come to terms by Nov. 1, when the company is obligated to make a roughly $270 million debt payment to a group of creditors that other, more senior creditors don't want to see paid."

However, the paper reported that they could not agree, among other things, on the value of Energy Future's Oncor regulated utility.

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