A bankruptcy judge yesterday approved bidder protections, including a $65 million breakup fee, to NRG Energy Inc. as it works to close a $2.6 billion offer to take Edison Mission Energy out of chapter 11 protection next year, Nasdaq reported yesterday. Less than one week after announcing what Edison Mission's bankruptcy attorney called a "monumental moment" in the company's chapter 11 case, Judge Jacqueline P. Cox of the U.S. Bankruptcy Court in Chicago signed off on the bidder protections for NRG. Edison Mission attorney Joshua Sussberg of Kirkland & Ellis LLP said that such bidder protections as the breakup fee and a pledge to reimburse NRG's sale-related expenses were necessary to securing the deal that Edison Mission hopes will take it out of bankruptcy next year. Judge Cox also authorized Edison Mission to continue shopping its assets to other buyers through Dec. 6. If the company were to find a better deal than NRG's offer to acquire the company for $2.285 billion in cash and $350 million in stock, NRG would receive the $65 million breakup fee. Judge Cox also signed off on Edison Mission's request to extend the time in which it alone may file a bankruptcy-exit plan. The company said it would file its plan, which is expected to have the NRG sale as its backbone, by mid-November. It hopes to win court approval of the plan by March 31 and close the sale by the end of July. Edison Mission, a unit of Edison International, generates energy at about 40 facilities in 12 states. It sought chapter 11 protection in December.
