TXU leveraged buyout (2007)
KKR, TPG, and Goldman Sachs bought Texas power utility TXU for about $45 billion, then the biggest leveraged buyout ever. Most of the price was borrowed against the company. It was renamed Energy Future Holdings.
The company carried roughly $40 billion in debt into a falling natural-gas market.
Energy Future Holdings filed for bankruptcy in 2014, wiping out much of the equity. It became a warning about buyouts loaded with debt.
EA's deal just topped TXU as the largest leveraged buyout on record. TXU shows how heavy debt can turn a record price into a trap if the business stumbles.
