from the Houston Chronicle  -As this article points out, first it will be Texas Competitive Electric Holdings, which is TXU and Luminant and then, after it goes under, EFH.

The staggering debt is a legacy of a massive $45 billion leveraged buyout in 2007 — one of the largest in history — by Kohlberg Kravis Roberts & Co., TPG Capital and Goldman Sachs Capital Partners.

Energy Future Holdings and its subsidiaries currently have more than $40 billion in debt. Of that, subsidiary company Texas Competitive Electric Holdings owes $30 billion and has a value of about $15 billion.

Will this be a larger bankrupcty than Worldcom?

The leverage buyout was negotiated on the belief that natural gas prices would stay high - a forecast that has since proven 0.

“The ability to service that debt included an assumption that gas prices would go no lower than $6 per million cubic feet,” Hempstead said. “The other assumption was that if natural gas prices did fall, they were volatile and would not stay low for a long period of time.”