The parent company of Midwest Generation, owner of coal-powered energy plants in Joliet, Romeoville and two other Illinois towns, may be headed to bankruptcy court, according to a published report.
Edison Mission Energy, which is part of Edison International, owes $97 million in interest on bonds, and there is "no assurance" they money will be repaid on its Nov. 15 due date or within the 30-day grace period following that date, a story in Crain's Chicago Business.
The announcement was part of Edison International's third-quarter earnings report, the story said.
“Failure to pay interest on the bonds will likely result in EME filing for bankruptcy protection under Chapter 11 of the Bankruptcy Code,” Edison International CEO Ted Craver said in prepared remarks.
Midwest Generation reported a $160 million operating loss in the first nine months of 2012, the story said. In the same period last year, the company was reporting $91 million in operating income, the story said.
The company has been hard hit by a softening market, caused by a decline in natural gas prices due to new production methods that have increased supply, the story said.
The company also owns plants in Waukegan and Pekin in central Illinois. Two Chicago plants were closed earlier this year.