September 20, 2001 — Southern California Edison’s creditors said Thursday a bankruptcy is all but inevitable.
Almost a dozen creditors want to force the utility into involuntary bankruptcy, saying they are becoming impatient with long delays in the state’s bailout process, Reuters News Service reported.
SoCal Edison, a unit of Edison International, ran up large bills paying high prices for power in the last year and was unable to pass the costs on to the ratepayers.
The California State Assembly has been working on a bailout measure that would pay all but about $1 billion of SoCal Edison’s debts. The ailing utility’s debt is up to $3.9 billion.
But the Senate version of the bill was stalled from a final vote during the week following the terrorist attacks on the New York World Trade Center towers and the Pentagon.
Unsecured creditors Reliant Energy and Mirant Corp. are looking for a third unsecured creditor so that they can force the bankruptcy process to begin, Reuters said.
Gov. Gray Davis, who backed the Assembly plan, has called another special session for Oct. 1.