Reuters: Bankruptcy News: REFILE-UPDATE 1-Edison Int'l says unit may file for bankruptcy protection

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REFILE-UPDATE 1-Edison Int'l says unit may file for bankruptcy protection Aug 1st 2012, 18:26 Wed Aug 1, 2012 2:26pm EDT Aug 1 (Reuters) - California power company Edison International said one of its unregulated generation subsidiaries may have to file for Chapter 11 bankruptcy protection because the unit may not have enough liquidity to repay debt due in 2013. Edison Mission Energy's liquidity will be exhausted by debt maturities and the need to upgrade its coal-fired power plants to meet new federal environmental rules, Edison International said in a regulatory filing on Tuesday. The unit needs to restructure about $3.7 billion of unsecured debt. It had cash and equivalents of $879 million as of June 30. Operating losses at the unit, which owns 45 power plants across the United States, increased significantly in the first half of 2012 due to lower power prices and higher fuel costs. The unit's second-quarter net loss widened to $110 million from $30 million a year earlier. The company said it will evaluate all options for the business, including a sale of assets, a restructuring and a reorganization of the capital structure. Without a restructuring of its obligations, EME is not expected to have sufficient liquidity to repay the $500 million debt due in June 2013, the filing with the U.S. Securities and Exchange Commission said. "While the exact path forward to success is not clear at this point, we are engaged with bondholders, and we plan on moving our discussions along as rapidly as we can," Chief Executive Ted Craver said on a conference call with analysts. Link this Share this Digg this Email Reprints

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