A $5-10 million auction of Edison Mission Midwest Holdings' bank debt was said to have failed last week after the seller of the paper was unable to receive the desired price for the loan. Dealers said the seller was looking for a better price than the 82-84 market where the paper was quoted. The identity of the seller could not be confirmed. One trader said the market has stopped talking about the fundamentals of the company and is just looking for levels for where the bank debt is trading. Prices for the bank debt have been sliding downward from the 90s since late last month.
Edison Mission Midwest Holdings has $911 million in bank debt coming due in December. But Edison Mission Energy, Edison Mission Midwest Holdings' direct parent, has a $275 million "A" piece that comes due September 16. Jo Ann Goddard, v.p. for investor relations at Edison International, did not return calls.