Dive summary:
- Edison Mission Energy creditors filed court papers Wednesday in U.S. Bankruptcy Court in Chicago asking for permission to sue the unit's parent company for fraud.
- The creditors, who took ownership of Edison Mission following its December bankruptcy, say they are victims of Edison International's "abusive domination and control" and they are now trying to recover their claims.
- In the filing, a committee representing the creditors cited $925 million worth of allegedly improper dividends paid by Edison Mission.
From the article:
... Edison International’s control over Edison Mission has harmed creditors, who should be able to sue to recover on their claims, they said in court papers filed yesterday in U.S. Bankruptcy Court in Chicago.
The parent “exploited this control in order to enrich itself and its regulated utility business,” a committee representing unsecured creditors said. ...