Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds / Energy

Edison Mission Energy Plan Confirmed, Sale Approved

The U.S. Bankruptcy Court confirmed Edison Mission Energy’s Third Amended Joint Chapter 11 Reorganization Plan. According to the documents filed with the Court, “The Amended Plan of Reorganization and Plan Supplement shall be consistent with this Agreement and shall provide, among other things, that (A) Mission Energy Holding Company shall retain 100% of the equity interests of the Company, (B) the Tax Sharing Agreements shall be deemed to have terminated pursuant to their terms on December 31, 2013, with respect to the Company, and shall not be assumed by the Company or assigned to NRG, (C) each EIX Released Party shall be identified as a ‘Released Party’ and an ‘Exculpated Party;’ (D) each EIX Released Party shall be afforded the protections under the injunction and exculpation provisions under Article VIII of the Amended Plan of Reorganization; (E) the Reorganization Trust is the successor in interest of the Company and Company Subsidiaries for purposes of performing the obligations under, enforcing, and obtaining the benefits of, the terms of this Agreement; (F) the Reorganization Trust shall assume all rights and obligations of the Company and the Company Subsidiaries under the Amended Plan of Reorganization and this Agreement; (G) the Debtors’ Motion to Establish Notification and Hearing Procedures For Transfers of, or Claims of Worthlessness with Respect to, Certain Equity Securities and for Related Relief [Docket No. 16] and any interim or final orders granting that motion shall cease to be of any further force and effect on and after the Effective Date; (H) the examination under rule 2004 commenced by the Debtors and the official committee of unsecured creditors and all related orders or subpoenas authorizing or issued pursuant to the rule 2004 examination shall be deemed terminated and cease to be of any further force or effect on and after the Effective Date; and (I) the Company will retain certain assets after the Effective Date pursuant to Section 4.c.” The Court concurrently approved the related sale of substantially all of Edison Mission Energy’s assets, including the equity interests in its subsidiaries, to NRG Energy. According to NRG Energy, this acquisition of renewable and conventional generation assets makes NRG Energy the “largest competitive US power company with about 53,600 megawatts of generating capacity” and “third-largest US-based renewable energy generation company.” NRG Energy expects to close the transaction by the end of the Q1 2014, following Federal Energy Regulatory Commission approval. The confirmed Plan incorporates the February 18, 2014 settlement agreement between Edison Mission Energy, Edison International and certain of Edison Mission Energy’s creditors. This independent power producer filed for Chapter 11 protection on December 17, 2012, listing $8.3 billion in pre-petition assets.

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