We study nonlinear vacuum electrodynamics in the first-order formulation proposed by Plebanski. We analyze in detail the equations of motion, and identify conditions for which a singularity can occur for the time derivative of one of the field components. The resulting degenerate behavior can give rise to a shock wave with a reduction of the local number of degrees of freedom. We use an example model to illustrate the occurrence of superluminal propagation for field values approaching the singularity.