(Bloomberg) -- As Energy Future Holdings Corp.’s board met last month to plan for bankruptcy, representatives of every influential creditor from Apollo Global Management LLC to Oaktree Capital Group LLC filed into a New York law office, except one.

Absent was the delegate from Fidelity Investments, according to two people with knowledge of the discussions. The second-biggest mutual-fund manager in the U.S. faced a conflict because a strategy championed by some of Fidelity’s fellow senior lenders had the potential to wipe out a $500 million investment it also had in the junior bonds from one of about a half-dozen debt-issuing units of the power producer.

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