Edison Mission Energy Files for Bankruptcy

Get Legal Help Today

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jul 16, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Facing nearly $5 billion in debt, power company Edison Mission Energy of Edison International has reportedly filed for Chapter 11 bankruptcy protection in order to avoid default.

The power generating company is based in Santa Ana, California, but operates plants in several states. Unregulated, the company runs numerous coal, natural gas and renewable energy plants; but with a decline in power demand and an increase in production, energy and natural gas prices have fallen, and Edison Mission has struggled to keep afloat.

Reports say the power company is looking at a $97 million interest payment that it cannot make. The Chapter 11 filing, which is intended to allow a business to maintain operations while restructuring debts, will let Edison work out a repayment plan with creditors to save from going out of business.

Heightened government regulations around the coal industry have affected companies like Edison in recent years. High costs associated with meeting environmental standards and emission caps have caused large coal-producing corporations to downsize. Reports indicate that Edison chose to close Mid-west plants, including those in Illinois, in lieu of conforming to environmental regulations. Investing some money in cleaner standards, however, may have kept the plants open and potentially helped the company avoid bankruptcy.

Many energy companies are facing the same obstacles, so perhaps it’s a symptom of a bigger industry dilemma. One that can only be addressed through investment of more environmentally sound operations such as wind and solar energy – some of which Edison has investment. And it seems Edison is heading in this direction: staying positive through its bankruptcy, Reuters reports Edison Mission President Pedro Pizarro saying, “We believe this financial restructuring — coupled with the existing strength of our employees and assets — will position us to take advantage of new opportunities while preserving our focus on safe, reliable operations.”

To learn more about Environmental Law, click this link.

To read about Chapter 11 bankruptcy filings and what they mean for a company’s future, go to the FreeAdvice Bankruptcy Law section.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption