Daily News: May 7, 2012

GE Capital Coal-Plant Bankruptcy Plan Spurs Cut on Debt

Bloomberg is reporting that GE Capital is weighing a prepackaged bankruptcy for the debt issuer on a coal-fired power plant being taken back from Edison Mission Energy, spurring Standard & Poor’s to cut the rating on $640 million of notes.

Bloomberg said the plant is owned by GE Capital and was leased by Edison Mission Energy. The companies agreed March 29 to transfer control to GE Capital and estimated that upgrades needed to meet new environmental regulations may cost as much as $750 million.

To read the full Bloomberg story click here.