Bloomberg News

Edison Mission Creditors Seek Fraud Suit Against Parent (1)

August 01, 2013

Edison Mission Energy creditors are seeking court permission to sue parent company Edison International (EIX:US) for fraud, accusing it of “abusive domination and control.”

Edison International’s control over Edison Mission has harmed creditors, who should be able to sue to recover on their claims, they said in court papers filed yesterday in U.S. Bankruptcy Court in Chicago.

The parent “exploited this control in order to enrich itself and its regulated utility business,” a committee representing unsecured creditors said.

Edison Mission, the unregulated generating unit of Edison International, filed for bankruptcy in December, saying creditors would take ownership of the unit under an agreement with the company.

In its court filing, much of which is redacted, the committee cited $925 million in allegedly improper dividends paid by Edison Mission to another unit.

A spokesman for Rosemead, California-based Edison International couldn’t immediately be reached for comment on the creditors’ filing.

The case is Edison Mission Energy, 12-49219, U.S. Bankruptcy Court, Northern District of Illinois (Chicago).

To contact the reporter on this story: David McLaughlin in New York at dmclaughlin9@bloomberg.net

To contact the editor responsible for this story: Andrew Dunn at adunn8@bloomberg.net


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Companies Mentioned

  • EIX
    (Edison International)
    • $63.56 USD
    • 0.95
    • 1.49%
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