The owner of six coal-fired power plants in Illinois has 30 days to work out an agreement with its bondholders or it will be forced to file for bankruptcy protection.
Edison International, the holding company for Edison Mission Energy, whose subsidiary is coal plant owner Midwest Generation, said Thursday that it elected not to make $97 million in interest payments that came due Thursday, triggering a 30-day grace period before the company is in default.
If Edison Mission Energy doesn’t pay before Dec. 17, bondholders can demand immediately the entire principal and interest of bonds that mature in 2017, 2019 and 2027.
Edison International said the company is in ongoing discussions with bondholders’ about a potential restructuring so Edison Mission Energy can avoid to avoid filing for bankruptcy protection under Chapter 11.
The company, which owns power plants in Powerton (Pekin), Joliet, Waukegan and Will County (Romeoville), in addition to the shuttered Crawford and Fisk coal plants in Chicago, has said it would operate normally while it restructures.