TXU staves off administration

DESPITE defaulting on millions of pound of bond interest repayments, energy group TXU Europe is continuing to stave off administration by keeping its major creditors on side.

DESPITE defaulting on millions of pound of bond interest repayments, energy group TXU Europe is continuing to stave off administration by keeping its major creditors on side.

The Ipswich-based group failed to make payments of about £130million last month and has now passed the 30-day deadline by which to sort the matter out.

But the banks, the group's biggest bondholder creditors, are fighting shy on demands for TXU to be placed in administration, recognising that they will probably get a better deal through negotiations.

A TXU spokesman claimed that the banks were supporting the group's efforts to "maximise value for its investors."


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Last month, the group sold off its UK energy retail business TXU Engergi and three coal-fired power stations to Powergen for £1.37 billion and has now put its German interests up for sale.

"The anticipation is that, as assets are sold, the money will be used to pay creditors, so they get the best value all round," said the spokesman.

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"Administration takes longer and creditors usually get less," he added.

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