SEC Says Edison Mission Can't Ditch Debt In Ch. 11 Plan

Law360, New York (February 11, 2014, 6:29 PM EST) -- The U.S. Securities and Exchange Commission on Monday challenged Edison Mission Energy’s plan to sell virtually all of its assets to NRG Energy Inc., saying it improperly affords the company and its subsidiaries a discharge of their debts.

The SEC argued in court papers that the Bankruptcy Code does not allow a debtor that is selling substantially all of its assets or that will not engage in business after the plan is confirmed to free itself of its debts. Congress included the provision because it wanted...
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