Can they come after any Edison International assets? Edison International I believe has stated in conference calls that Edison International is isolated from this event and it won't hurt the dividend. I don't think the value of Edison Mission is even half that of the bonds due to low power prices(imho) and the need for environmental upgrades. The sale of the constellation coal fired plants went for around $400 million and they are about half the capacity of the MW Gen plants. Although the debt does include wind facilities and the MWGen coal fired plants use powder river basin coal and are very competitive in the wholesale market and are some of the top performing coal plants in the country. On the negative side the wholesale market for power is horrendous and under tremendous pressure from environmental regulators. Although this could change in the blink of an eye if for some reason NG prices spike upward. Of course nobody is expecting this to happen. (so it probably will) Wind is a big loser without federal subsidies and state mandates. Good luck to all who work there. BTW does anyone know much about York Capital Management who owns the majority of the bonds. I read the bio on David York, the President and owner of the firm, he seems pretty cool. Hopefully he will treat the employees of Edison International fairly. Once again Good Luck to all.
Thanks, I guess they will be able to write the loss off over 2013 & 2014 which will increase cash flow for EIX. It appears to be a win for EIX since they are getting rid of 3.5 billion in debt and assets that are losing money. That would be very nice of them to pick up the pension liabilities. Apparently wall street likes it based on stock price.