The approved Plan incorporates the Settlement Agreement reached on February 18, 2014, between EME, Edison International, and certain of EME’s creditors.
This approval will allow the Settlement, as well as the planned sale of substantially all of EME’s assets and stock of subsidiaries to NRG Energy, Inc., to be implemented.
Under the Plan of Reorganization and consistent with the Settlement Agreement, EME will emerge from bankruptcy free of liabilities and remain a subsidiary of Edison International.
All assets and liabilities of EME that are not otherwise discharged in the bankruptcy or sold to NRG Energy, Inc. will be transferred to a newly-formed trust under the control of EME’s creditors, other than certain income tax and pension related liabilities being assumed by Edison International under the Settlement Agreement.
