Federal securities regulators say that public policy concerns are driving their newly launched bid to block Edison Mission Energy's plan to exit bankruptcy via a sale to NRG Energy Inc., Dow Jones Daily Bankruptcy Review reported today. The Securities and Exchange Commission on Monday filed papers asking a Chicago bankruptcy judge not to approve Edison Mission's chapter 11 reorganization plan, which the judge is slated to take up next week. The SEC says Edison Mission's plan violates bankruptcy laws by proposing to sell the company's operations, free it from its debts and issue new shares in the left-behind company to creditors.
