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Enron Mail |
----- Forwarded by Jeff Dasovich/NA/Enron on 02/14/2001 02:03 PM -----
"Ronald Carroll" <rcarroll@bracepatt.com< 02/14/2001 10:24 AM To: <acomnes@enron.com<, <dfulton@enron.com<, <jdasovic@enron.com<, <jhartso@enron.com<, <jsteffe@enron.com<, <mary.hain@enron.com<, <smara@enron.com<, <snovose@enron.com< cc: Subject: Fwd: SoCal Edison unsure banks will extend deadline ----- Message from "Tracey Bradley" <tbradley@bracepatt.com< on Wed, 14 Feb 2001 07:58:32 -0600 ----- To: "Paul Fox" <pfox@bracepatt.com< cc: "Alfredo Perez" <aperez@bracepatt.com<, "Andrea Settanni" <asettanni@bracepatt.com<, "Charles Shoneman" <cshoneman@bracepatt.com<, "Ronald Carroll" <rcarroll@bracepatt.com< Subject: SoCal Edison unsure banks will extend deadline Tuesday February 13, 7:02 pm Eastern Time SoCal Edison unsure banks will extend deadline NEW YORK, Feb 13 (Reuters) - Embattled California utility Southern California Edison said on Tuesday it didn't know whether its bank lenders will extend their Tuesday deadline for the utility to clear up its credit line defaults. ``We don't have any indication'' the banks will extend their ``forbearance,'' said Ted Craver, chief financial officer of SoCal Edison parent Edison International (NYSE:EIX - news) in an investor conference call Tuesday afternoon. Craver said the utility formally asked for an extension in a Tuesday morning conference call. Failure to get one could tip the utility much closer to bankruptcy, though Craver said the banks aren't looking to worsen the power crisis. ``My view of the relationship with the banks is that it's strong, and that they are, generally speaking, looking for ways to be cooperative and constructive in this process,'' he said. SoCal Edison, California's No. 2 utility, and Pacific Gas & Electric Co., the No. 1 utility and unit of San Francisco-based PG&E Corp. (NYSE:PCG - news), are trying to avoid bankruptcy. They have been unable to recover about $12 billion because of a rate freeze imposed under California's 1996 utility deregulation law, which has left them unable to pass on their soaring wholesale power costs to consumers. SoCal Edison has about $800 million of debts due this week. On Thursday a grace period to pay about $206 million of principal and interest on a five-year note issue expires. Pacific G&E and its parent are also in default of various credit lines. Creditors including independent power suppliers Dynegy Inc. (NYSE:DYN - news), Mirant Corp. (NYSE:MIR - news) and Reliant Energy Inc. (NYSE:REI - news), meanwhile, are threatening to send both utilities into bankruptcy if they don't pay their debts. Gov. Gray Davis and the state legislature are expected soon to create a plan that could allow the utilities to pay down some of their debt. Craver said ``we're not betting the farm on getting a proposal'' by Friday. Shares of Edison International, which is based in Rosemead, Calif., closed Tuesday on the New York Stock Exchange at $12.10, down 43 cents. PG&E shares closed on the Big Board at $12.30, down 25 cents. Several bank lenders declined on Tuesday to discuss how they plan to address the utilities' defaults. Bank One Corp. (NYSE:ONE - news), Citigroup Inc. (NYSE:C - news) and J.P. Morgan Chase & Co. (NYSE:JPM - news) are among PG&E's lenders, while Bank of America Corp. (NYSE:BAC - news), Citigroup and J.P. Morgan Chase are among the lenders to SoCal Edison and its parent. ``We do not comment on customer relations,'' said Bank One spokesman Tom Kelly. J.P. Morgan Chase declined to discuss the matter. Bank of America and Citigroup did not return phone calls.
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