Edison Mission Bankruptcy Plan ApprovedTuesday, March 11, 2014
Edison International said Tuesday that a bankruptcy judge in Chicago has approved the sale of most assets of one of its units to a New Jersey electric utility.
The Rosemead parent of Southern California Edison announced in October that NRG Energy Inc. of Princeton had agreed to buy Edison Mission Energy’s assets in a stock-and-cash deal valued at $2.6 billion. Edison International, Edison Mission and creditors reached agreement on the Chapter 11 exit plan last month.
NRG will pay $2.28 billion in cash and $350 million in stock for the assets, which includes which several coal-fired power plants and wind and natural gas assets in the Midwest and California. Proceeds will be used to pay Edison Mission creditors.
Edison Mission in Santa Ana will remain an Edison International subsidiary for tax purposes. Under a proposed legal settlement, unsecured creditors and Edison International split $1.2 billion in federal and California tax credits.
Edison Mission blamed its financial problems on a combination of low power prices, high fuel costs and the environmental requirements of retrofitting its coal-fired power plants.
NRG operates 89 fossil-fuel plants, four utility scale solar facilities, four wind farms and a variety of solar facilities.
The Federal Energy Regulatory Commission still must sign off on the deal, which is expected to close by late this month or early April.
Edison International shares closed down 43 cents, or less than 1 percent, to $50.76 on the New York Stock Exchange.