Dive Summary:
- Edison International's unregulated electricity producing subsidiary, Edison Mission Energy, filed for bankruptcy in Chicago today as a result of enervated energy rates and prohibitive fuel costs.
- After an accord with the holders of its $3.7 billion in debt, Edison International will consign its stake in Edison Mission Energy to unsecured creditors.
- The company listed $5.13 billion in assets and $5.09 billion in liabilities.
From the article:
"... Edison Mission Energy President Pedro Pizarro said the agreement is a first step in enhancing its liquidity. The company has been challenged by depressed energy and capacity prices and high fuel costs, according to the statement. Subsidiaries including Midwest Generation also filed for Chapter 11 bankruptcy protection.
The companies 'have been hit by a sea change in the power market’s competitive landscape, dramatically higher environmental capital expenditure requirements, and debt payment maturities that have severely limited the debtors’ ability to compete effectively,' Maria Rigatti, Edison Mission’s chief financial officer, said in court papers. ..."