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Bondholders Could Find TXU Europe Ltd. Hard to Unravel; Prospects for Recovery Limited Oct 02
Standard & Poors, Oct 2002
Abstract
If TXU Europe Ltd. is broken up and the various assets sold, the bondholders' position could be vulnerable and full recovery would be highly unlikely, according to Standard & Poor's analysis. There could be greater challenges in determining the recovery prospects for bondholders and other creditors than is normal, due to the complex legal and financial structure that has evolved since 1996. Many obstacles remain in the way of recovery of value for bondholders, not least being the possible senior position of creditors to TXU Europe Energy Trading Ltd. under various power purchase agreements. The broad conclusions reached by Standard & Poor's recovery analysis are: The likely proceeds from a sale of the valuable parts of TXU Europe are clearly...
Companies mentioned in this report are: Energy Future Holdings Corp.,Scottish and Southern Energy PLC,Energy Group Ltd. (The),TXU Europe Group PLC,TXU Europe Ltd.,International Power PLC
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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