Edison Mission Energy, a power company that operates in more than a dozen US states, is preparing a possible bankruptcy filing as it tries to restructure about $5 billion in debt, according to a source close to the matter. Edison Mission, the unregulated power generation business of Edison International, is unlikely to make an interest payment on bonds due on Monday and is preparing a bankruptcy filing as early as Sunday to avoid default, according to the source, who declined to be identified because plans are still being finalised.
Spokesmen for Edison International and Edison Mission did not respond to requests for comment. An investor relations representative for Edison International declined to comment. Edison Mission, based in Santa Ana, California, owns and operates coal, natural gas and renewable power plants totalling more than 10,000 megawatts in states including California, Illinois, Pennsylvania and West Virginia.
It has suffered as the 2008 recession cut power demand. Wholesale power prices have also fallen with cheaper natural gas, making it harder for Edison's coal-fired plants to remain competitive. Edison Mission faces the expiration on Monday of a 30-day grace period for a $97 million interest payment that was due last month on unsecured bonds. In mid-November, the company said it would likely file for Chapter 11 protection if it could not make the payment.
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