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California | IN BRIEF

Southern California Edison to Default on Principal Payments

May 31, 2001|Bloomberg News

Southern California Edison, the state's No. 2 utility, will default on principal payments on $200 million of six-year notes coming due Friday, company executives said.

The unit of Rosemead-based Edison International is struggling under more than $5.4 billion of losses incurred paying soaring power costs it couldn't pass on to customers. Edison has defaulted on more than $490 million of commercial paper this year and on $200 million of five-year notes that came due on Jan. 16.

On a May 8 conference call, company officials warned investors it would be highly unlikely they would get principal payments due on bonds.

Edison has been paying investors holding defaulted notes and commercial paper interest at the coupon rate on the debt. The utility owes interest of $216,666.67 on the notes that mature Friday.

Edison stock fell 69 cents to close at $10.29 on the New York Stock Exchange.

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