Edison Mission Energy Chapter 11 bankruptcy plan in effect April 1

By Kali Hays

New York, April 1 - Edison Mission Energy's Chapter 11 bankruptcy plan is in effect as of April 1, according to a notice filed Tuesday with the U.S. Bankruptcy Court for the Northern District of Illinois.

The company completed the transactions required under the plan, and the established reorganization trust for distributions received the cash purchase price of about $3.02 billion and 12.67 million shares of NRG Energy, Inc. common stock.

As previously reported, Edison's sale of substantially all of its assets to NRG was approved by the Federal Energy Regulatory Commission March 19, making NRG the second-largest power company in the United States.

The reorganization trust also received $225 million from the company's settlement with Edison International and some creditors.

Plan terms

Plan creditor distributions will include the following:

• Holders of priority claims against Edison Mission and its debtor subsidiaries will be paid in full in cash;

• Holders of secured claims against Edison Mission, the debtor subsidiaries and the Homer City debtors will be paid in full in cash or receive another treatment that renders the claims unimpaired;

• Holders of general unsecured claims against the debtor subsidiaries will receive full payment of principal amount in cash;

• Holders of assumed liability general unsecured claims against Edison Mission will receive payment in full in cash under the terms of a purchase agreement;

• Holders of not-assumed liability general unsecured claims against Edison Mission and joint-liability general unsecured claims will receive a share of net sale proceeds, net settlement proceeds and new interests. The net settlement proceeds were not included in the original version of the plan;

• Holders of allowed claims against the Homer City debtors will be paid in absolute priority from the Homer City wind-down proceeds for the applicable debtor;

• Holders of intercompany claims and subordinated claims will receive no distribution;

• Edison Mission interests will be reinstated. These interests were previously scheduled to be canceled; and

• Intercompany interests in subsidiary debtors will be reinstated, and Homer City debtor interests will be canceled.

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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