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Edison International (NYSE: EIX ) unit Edison Mission Energy has filed for Chapter 11 bankruptcy protection, the parent company said in a statement. Edison International said it will subsequently deconsolidate its California-based subsidiary. EME's ownership is to be transferred to its creditors, a move that requires approval by the bankruptcy court.
A website dedicated to the EME restructuring said the reorganization plan will also seek to "retire existing public debt and enhance [EME's] access to liquidity." The goal is for the subsidy to emerge as a recapitalized company independent of Edison International.
The website also characterized EME's operations as "healthy" and said they would continue uninterrupted.