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Bankruptcy is Likely for Coal Plant

Posted on in Bankruptcy

In Illinois, the owner of six coal fired electric generating plants, including Fisk and Crawford stations in Chicago, is very close to filing for bankruptcy. The chairman and chief executive officer at Edison International, the holding company for Edison Mission Energy whose subsidiary is Midwest Generation, Ted Craver said EME is not expecting to repay $500 million debt that is due in June 2013. He says the company is likely to file for bankruptcy protection by the end of the year. The company had $97 million of interest due on its bonds on November 15, or within a 30 day grace period, but the company could not guarantee that it will be able to pay that bill.

The company has been hit very hard by low natural gas prices, like other coal plant owners. These low prices cut into margins and lowered power prices overall. Midwest Generation owns and operates the Powerton (Pekin), Joliet, Waukegan, and Will County (Romeoville) power generation plants, along with Fisk and Crawford.

The goal of any restructuring, financially, is to, “position our company for near-term stability and sustainable, long-term growth and success,” according to the spokesman for Midwest Generation, Douglas McFarlan. He also said that the expect is expecting to continue to operate normally while it restructures their finances at the same time.

McFarlan said that the company is, “operationally healthy,” and he believes that after much financial restructuring, along with the existing strength of current employees and assets, the company's focus on safe operations will be preserved and position the company to take any opportune advantages in the future.

Unfortunately, in these trying economic times, many people are having to file for bankruptcy, not just large companies. If you find yourself in this position, contact Newland & Newland, LLP attorneys. Stephen S. Newland and Gary A. Newland can help you file for bankruptcy and protect you from getting taken advantage of, contact them now in Northern Illinois.

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