Edison Mission seeks emergency approval of Tyche Power settlement

By Jim Witters

Wilmington, Del., Dec. 4 - Edison Mission Energy is seeking approval of a stipulated settlment with Tyche Power Partners LLC that resolves disputes over a 2003 stock purchase agreement, according to a Dec. 4 filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

Under the 2003 agreement, Edison sold Tyche all of its interests in a Brooklyn, N.Y., power facility for $42 million.

Edison claims that $4.06 million in an escrow account is its property.

Tyche is seeking to recover the escrow amount, plus millions of dollars in damages, based on Tyche's allegation that Edison breached "numerous representations and warranties in the SPA."

The key terms of the proposed settlement include the following:

• Tyche will receive $200,000 of the escrow account, and Edison will receive the remainder, after costs and fees are deducted;

• Tyche and Edison will sign mutual releases of all claims against each other;

• Edison will assign to Tyche all of its interests in the York Partners reimbursement agreement dated Nov. 1, 1997;

• Edison will assign to Tyche all of its interests in a tax refund claim which BNYCP has against Consolidated Edison of New York;

• All pending litigation will be dismissed with prejudice; and

• Tyche will withdraw its proof of claim in the Edison bankruptcy.

A hearing on the proposed settlement is scheduled for 10:30 a.m. ET on Dec. 18.

Edison Mission, a Santa Ana, Calif.-based owner, operator and leaser of a portfolio of electric generating facilities, filed for bankruptcy on Dec. 17, 2012. Its Chapter 11 case number is 12-49219.

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