Forum Archive Index - January 2001

[Sarah Corkill <sarahcorkill@yahoo.com>]

Hi all,

An interesting article Bloomberg.  Anyone hoping Edison will shortly be
making an offer for all the CEN shares it doesn't already own will be
sorely disappointed by this bit of news.

'Edison International said it won't pay $596 million in bills because it
doesn't have the cash, pushing the owner of California's second- largest
utility closer to a bankruptcy filing. 
Edison said its Southern California Edison utility temporarily suspended
payments of $230 million to holders of 5.88 percent notes due today, $215
million to the California Power Exchange and $151 million to some
power-plant operators. 

It has almost $1.2 billion in cash, Edison said in a filing with the
Securities and Exchange Commission. It owes more than $1.5 billion and
will run out of money on Feb. 2. California Governor Gray Davis and the
Legislature are trying to negotiate an agreement with power sellers to
prop up Edison and PG&E Corp., owner of the state's largest utility. 
``Unless the state steps up to the plate quickly, Edison is going to have
to file for bankruptcy protection,'' said Sean Egan, managing director at
Egan-Jones Ratings Co. Edison needs about $2 billion in immediate
financing to survive, he said. 
The decision to suspend debt payments puts the company in default on the
notes, and on other credit facilities of Rosemead, California-based Edison
and Southern California Edison, the company said in its SEC filing.
Foreclosure Possible.'

The full story is available on:
http://quote.bloomberg.com

Regards,

Sarah 

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