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|Subject: Re: Any updates on Edison Mission Energy bonds?||Date: 12/7/2013 5:41 PM|
|Author: howardgt||Number: 35112 of 35930|
From WSJ Dec. 6, 2013
Edison Mission Bondholders Turn to Wilder for Bankruptcy Help
Edison Mission Energy's bondholders are hiring a team led by TXU Corp.'s former chief executive to help them navigate a coming legal battle in Edison Mission's bankruptcy.
Judge Jacqueline Cox, of the U.S. Bankruptcy Court in Chicago, on Thursday authorized Edison Mission to pay the bills of Bluescape Advisors LLC as Bluescape advises the bondholder group in connection with possible litigation against Edison Mission's parent, Edison International.
Edison Mission and its unsecured creditors, which include the bondholders, have been preparing to sue Edison International over allegations that it siphoned hundreds of millions of dollars from Edison Mission before the Chapter 11 filing. Edison International has vowed to fight the allegations, which it says lack merit.
It is a dispute in which the bondholders—and other unsecured creditors—have a lot at stake, as any money that is recovered from a potential lawsuit or settlement will be added to the cash and stock they are already set to recover from Edison Mission's restructuring.
Depending on such variables as an Edison International lawsuit or settlement, unsecured creditors will recover 57.3% to 100% of what they are owed under the restructuring plan.
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