Pilsen power plant owner may file for bankruptcy
08/01/2012 3:27 PM
As Pilsen and Little Village wonder what’ll happen to the Fisk and Crawford coal-fired power plants after they shut down this fall, a new wrinkle has emerged that could affect what the company that owns them decides to do with the sites.
According to the Chicago Tribune, the plants’ owner, Midwest Generation, probably won’t have the cash flow necessary to pay back $500 million in debt that’s due next June and could seek bankruptcy.
The paper said Midwest Generation is struggling to pay for environmental upgrades required at its aging power plants, and low power prices aren’t helping matters, according to its parent company, Edison International.
Edison International is looking to restructure $3.7 million in unsecured debt to avoid filing for bankruptcy reorganization, the Tribune reported.
Midwest Generation is part of a holding group within Edison International known as Edison Mission Energy, and Edison Mission as a whole isn’t performing well. If Edison Mission enters bankruptcy, it could split from Edison International, the Tribune reported.
While an ownership change would not affect Midwest Generation’s legally binding agreement with the city to shut down Fisk and Crawford, it could affect the future of the sites. The shutdown agreement didn’t say what would come next for the former power plants; that decision is up to Midwest Generation.
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By George from Far West Side
Posted: 08/02/2012 11:53 AM
One thing for sure. Don't be surprise the reps of Target and Walmart are already investigating this space for a future location.
By Sam from Near West Side
Posted: 08/02/2012 11:24 AM
Your are right, Robert. Ever time when an owner decides to close a factory or plant for good for whatever reasons (don't want to spend money on upgrades/built a new building; won't comply with EPA new rules; owe employees and bill collectors money; government not giving any more tax breaks), there is the good ole standby "lets file for bankruptcy".
By Robert from Dearborn Park 1
Posted: 08/02/2012 7:31 AM
I could see this coming a mile away. Shut down the plant, declare bankruptcy and then the taxpayer will have to pick up the tab to clean the land.