A lease facility related to Midwest Generation, the wholly-owned subsidiary of Edison Mission Midwest Holdings, has been seen trading in the 78-80 range, up from the 70-71 context just over two weeks ago. Traders said the Collins Station facility has been growing stronger because there is less of a sentiment that Edison Mission Midwest Holdings will run into liquidity problems when $911 million of bank debt comes due on Dec. 11.
Market players were worried that if the company had trouble dealing with the maturity, it would ultimately have to file for bankruptcy. If the company were to file for Chapter 11, it could potentially reject the lease. But since market players are less worried about liquidity issues, the name is trading up. The bank debt of Edison Mission Midwest Holdings has also been stronger. Traders said the name was bid in the 91 context last week with market players' belief that the company will soon present a plan to deal with the maturity. No concrete details for a plan could be obtained. A company spokesman did not return calls by press time.