Edison Mission Energy, the unregulated power generation business of Edison International, has filed for chapter 11 protection after being hurt by heavy debts, weak power prices and high fuel costs, Reuters reported today. Under a restructuring plan that needs court approval, Edison International will transfer its 100 percent equity interest in Edison Mission to unsecured creditors including noteholders, who together hold about $3.7 billion of the company's outstanding public debt. A large portion of the debt is held by a group of hedge funds including York Capital Management, which invests in distressed debt. The restructuring aims to substantially reduce the company's existing public debt. The case is Edison Mission Energy, Case No. 12-49219, U.S. Bankruptcy Court (N.D. Ill.).
