Texas utility company Energy Future Holdings became history’s eighth-largest bankruptcy on Tuesday.
It was saddled with debt by a horde of private equity firms, including KKR & Co., TPG Capital Management LP, and Goldman Sachs Group Inc.’s private-equity arm. It even became one of Warren Buffett’s biggest mistakes.
In 2007, the company and its suitors spent millions of dollars lobbying Texas lawmakers and regulators to allow them to complete this deal. They even served 2,400 tacos during opening day of the legislature.
They sure have indigestion now after filing a $49 billion bankruptcy. They’re making bankruptcy history right beside some of the biggest failures in business: Lehman Brothers, Washington Mutual, WorldCom, General Motors, CIT Group, Enron, and Conseco.
Click here to read my column on MarketWatch.