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T U E S DAY , D E C E M B E R 18 , 2 012

L AT I M E S . C O M / B U S I N E S S

Edison Mission Energy files for bankruptcy

By Ronald D. White Edison Mission Energy, an unregulated power-generating unit of Edison International, said Monday that it had filed for bankruptcy protection and had agreed on a reorganization plan with its parent company and holders of its $3.7 billion in debt. Edison International of Rosemead also is the parent company of Southern California Edison, one of the nations largest electric utilities. Edison Mission Energy spokesman Douglas McFarlan said that SCE and its customers werent affected by the filing. As part of the reorganization plan, Edison Mission Energy will separate from Edison International and be considered by the parent company to be a discontinued operation. Edison Internationals stake in the unit will be transferred to unsecured creditors. We are pleased to have reached this agreement, which we believe reflects the long-term value potential of our organization, Pedro Pizarro, president of Edison Mission Energy, said in a statement. This is an important first step in the process to reduce our debt, enhance our liquidity profile and position EME for continued operation and future success. Edison Mission Energy of Santa Ana said it had slightly more than $5.1 billion in assets and just under that amount in liabilities in Chapter 1 documents filed 1 Monday in U.S. Bankruptcy Court in the Northern District of Illinois. Edison Mission Energy has been struggling on several fronts: depressed energy prices because of the nations boom in natural gas production; higher fuel costs affecting its older coalfired facilities and pending debt maturities. The company also said that it faced the need to retrofit its coal-fired facilities to comply with environmental regulations. Despite the challenges, Pizarro sought to strike a positive tone on Edison Mission Energys future. We believe this financial restructuring coupled with the existing strength of our employees and assets will position us to take advantage of new opportunities while preserving our focus on safe, reliable operations, Pizarro said. Edison Mission Energy companies own, operate and lease a portfolio of more than 40 electricity generating sites around the U.S. that are powered by wind, natural gas, biomass and coal, as well as an energy ron.white@latimes.com

marketing and trading operation based in Boston. Edison International said it expected to take a tax charge of about $1.5 billion during the fourth quarter because of the bankruptcy. Its shares rose 18 cents to $44.99.

Christof Stache AFP/Getty Images

BMW IS BATTLING Mercedes-Benz for the 2012 sales crown in the luxury market. BMW was No. 1 last year

and is offering aggressive rebates through the end of the year in a bid to retain its top position in the market.

Competition fuels year-end car deals

Automakers vying for annual sales crowns often sweeten their offers in December.
By Jerry Hirsch Automakers are vying to win annual sales crowns while dealerships are trying to hit year-end and monthend goals a confluence of events thats good for car shoppers, said auto analyst Tom Libby of R.L. Polk & Co. Thats why the airwaves and weekend newspaper ads are stuffed with year-end deals for new cars. Employees at dealerships and the sales staffs at manufacturers are compensated in part on whether they achieve year-end sales objectives as well as December goals, which in effect doubles the pressure to sell new vehicles, Libby said. This can result in savings to the retail customer over and above what is available at other times of the year. In the luxury market, BMW and Mercedes-Benz are battling for the 2012 sales crown. Through November, Mercedes-Benz less its Sprinter utility van led BMW by just 5,162 units, according to Polks data. BMW beat out Mercedes-Benz and Lexus last year and has launched aggressive rebates through the end of the year in a bid to retain its top position in the market. Libby noted that a similar battle is going on for supremacy in muscle cars. Through November, GMs Chevrolet Camaro led the Ford Mustang by only 1,096 cars. Camaro was the winner last year. Libby said people cross-shopping the pony cars should see great deals on both through the rest of December. Theres another battle going on between Toyota and Chevrolet. Through November, the Toyota nameplate was third behind Ford and Chevrolet, but it trailed Chevrolet by just 9,753 units. Libby said Chevrolet will want the runner-up spot, and therefore will offer good deals to get shoppers into its cars. Toyota, on the other hand, will want to surpass Chevrolet, which should generate special deals on their products, he said. Finally, General Motors is shifting the factory floors at four plants to produce redesigned 2014 Chevrolet Silverado and GMC Sierra pickup trucks. It has built up a huge inventory of trucks 139 days worth, according to Polk to get through the downtime. Thats too much of the current versions, almost 250,000 trucks. To rectify this situation, recently GM has put additional incentives on the existing inventory, and as yearend approaches, there will be increasing pressure to move these units, Libby said. jerry.hirsch@latimes.com

Firm spied on port workers, union says

By Michael Welles Shapiro APM Terminals has been accused by a California dockworkers union of eavesdropping on workers to gain an edge in contract negotiations. The complaint, filed with the National Labor Relations Board by International Longshore and Warehouse Union Local 63, said APM conducted secret surveillance, eavesdropping and snooping and listening in on confidential communications between and among union representatives, shop stewards and members concerning ongoing contract negotiations, bargaining strategies and labor-management issues. The complaint was filed Nov. 14, about two weeks before the unions clerical workers went on an eight-day strike that shut most cargo terminals at the L.A. and Long Beach ports. It alleges that the surveillance dates back at least six months. An APM official said the company is treating the accusation seriously and put an employee on administrative leave as it conducts its own investigation. It is not APMs policy to monitor a union members calls, and APM Terminals is conducting an investigation into the allegations, as is typical in any case like this, said John Crowley, senior vice president for law and regulatory affairs. A National Labor Relations Board spokeswoman said the unions allegation is under investigation. The accusation was first reported this month by Fagbladet 3F in Denmark, where APMs parent, A.P. MollerMaersk Group, is based. business@latimes.com Shapiro writes for the Daily Press in Newport News, Va.

Dilbert
By Scott Adams

Sprint to pay $2.2 billion to acquire the rest of Clearwire

It would gain wireless spectrum in the deal, helping it compete with AT&T, Verizon.
By Jim Puzzanghera WASHINGTON Sprint Nextel Corp. said it had reached a deal to acquire the rest of fellow wireless carrier Clearwire Corp. for $2.2 billion in cash. The acquisition, which has yet to be approved by federal regulators, would expand Sprints holdings of wireless spectrum to help it compete with larger rivals AT&T Inc. and Verizon Wireless. Sprint is the nations third-largest carrier. The deal marks yet another significant step in Sprints improved competitive position and ability to offer customers better products, more choices and better services, Chief Executive Dan Hesse said Monday. Sprint is uniquely positioned to maximize the value of Clearwires spectrum and efficiently deploy it to increase Sprints network capacity, he said. Sprint shares gained a penny to close at $5.56 on Monday. Clearwire fell 46 cents, or 13.6%, to $2.91. Sprint, which owns about 51% of Clearwire, initially offered $2.60 a share for the remainder of the company. It raised the offer Thursday to $2.90 a share, or a total of $2.1 billion. To secure the deal, Sprint further sweetened the offer to $2.97 a share, the company said Monday, and Clearwires board unanimously agreed to accept. Our board of directors has been reviewing available strategic alternatives over the course of the last two years, Clearwire CEO Erik Prusch said. The board decided that accepting the latest Sprint offer was the best path forward, he said. The final offer amounts to 128% of the value of Clearwires stock in early October, before word hit the markets that Japanese telecommunications firm SoftBank Corp. was in discussions to acquire a majority stake in Sprint. On Oct. 15, SoftBank agreed to buy 70% of Sprint for $12.1 billion. It was widely assumed the acquisition by SoftBank would include a buyout of Clearwire to provide additional U.S. airwaves. Clearwire, which is based in Kirkland, Wash., was formed by cellular pioneer Craig McCaw to take advantage of WiMax, an emerging wireless technology that promised higher speeds and lower costs than conventional cellular technology. jim.puzzanghera @latimes.com

Donald T. Sterling Charitable Foundation

The Donald T. Sterling Foundation contributes to those in need and will continue to provide help, support & assistance in the future. All of Our Resources Are Available Our Charitable Foundation Our Law Firm Our Clippers Organization Our Real Estate Portfolio Our Investment Portfolio
DONALD T. STERLING CHARITABLE FOUNDATION

Commits $10 million, in grants & scholarships to 50 charities and 10 high schools.

DEC 12 LAA1071407-1