Edison Mission Energy debtor inks deal with electrical union retirees

By Caroline Salls

Pittsburgh, Jan. 27 - Edison Mission Energy debtor EME Homer City Generation LP reached a $21.8 million settlement with some retirees represented by the International Brotherhood of Electrical Workers Local 459, according to a Jan. 24 filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

The company said debtor EME Homer City historically had provided retiree benefits, which were funded with revenue from the operation of its facility.

After it handed the facility back to a General Electric Capital Corp. affiliate, EME Home City lacked the revenue-generating operations that would allow it to continue to fund the benefits, and the GECC affiliate did not agree to assume responsibility for the retiree benefits.

EME Homer City terminated the retiree benefits effective as of May 1, 2013. Since then, the union and about 20 retirees have filed claims related to termination of the benefits.

Under the proposed settlement, the retirees will have a total of $21.8 million in general unsecured claims against EME Homer City.

Edison Mission said 55% of all Chapter 11 plan distributions that would otherwise be made by EME Homer City under an intercompany claim will be assigned directly to the retirees based on the allowed amount of the claims set in the settlement.

The retirees have also agreed to vote in favor of the plan.

A hearing is scheduled for Feb. 4.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.