GE Capital Corp. is weighing a pre-packaged bankruptcy for the debt issuer on a coal-fired power plant being taken back from Edison Mission Energy, spurring Standard & Poor's to cut the rating on $640 million of notes, Bloomberg News reported on Friday. Debt issued by Homer City Funding LLC for the Pennsylvania plant was reduced by two levels to CC, S&P said. General Electric Co.'s GE Capital plans to exchange the debt for new bonds that allow for interest payments to be made in cash or additional debt from Oct. 1, 2012, to April 1, 2014, according to a Securities and Exchange Commission filing on Thursday. Homer City Funding would be the entity involved in any pre-packaged bankruptcy, according to the SEC filing.
