Reuters - Energy Future Creditors Sue for $725m

Energy Future Holdings Corp, the power company that went private in a $45 billion buyout but last month said it could go bankrupt, is facing a new headache as a unit's creditors have filed a $725 million lawsuit to recover unpaid interest, writes Reuters. Affiliates of the hedge fund Aurelius Capital Management LP sued seven current and former Energy Future Competitive Holdings Ltd directors, saying they improperly let the parent once known as TXU Corp be repaid billions of dollars of fraudulent intra-company loans without ensuring full payment to creditors, writes Reuters.

DealsNorth AmericaUSBriefs