(MENAFN) Edison Mission Energy, a unit of California-based Edison International, has filed for Chapter 11 bankruptcy protection, hurt by heavy debts, weak power prices and high fuel costs, Reuters reported.
Edison Mission affiliates that filed for Chapter 11 protection include Midwest Generation, which manages the company's fleet of coal-fired plants in Illinois. However, the company's wind energy projects were not included in the bankruptcy filings.
Under a restructuring plan, pending court approval, the parent company will transfer its 100 percent equity interest in Edison Mission to unsecured creditors including noteholders, to which together the indebted company owes about USD3.7 billion.
The restructuring aims to substantially reduce the company's existing public debt. Edison Mission's operations are expected to continue as normal in the meantime.
Pedro Pizarro, president of Edison Mission, said in a statement that the company plans to emerge from the restructuring as a recapitalized company separate from its parent.
The separation from Edison International is anticipated to occur by December 2014.
Edison Mission, based in Santa Ana, California, owns and operates coal, natural gas and renewable power plants producing more than 10,000 megawatts in states including California, Illinois, Pennsylvania and West Virginia.
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