Mirant obtains order barring some creditors from trading

By Carlise Newman

Chicago, July 22 - Mirant obtained an emergency court order barring creditors holding claims against Mirant over $250 million and shareholders owning 4.75% of Mirant's stock from selling or trading shares or claims until the bankruptcy court can consider Mirant's request to establish a notice procedure regarding trading of shares and claims.

A hearing is scheduled for 9.00 a.m. on July 23 to consider a proposed notice procedure requiring holders of claims, preferred securities and common stock to provide at least 10 days advance notice of their intent to buy or sell claims against the debtors or shares in Mirant.

The Atlanta-based energy company also asked that the court establish a procedure to impose sanctions for violations of the notification requirements.

Mirant said the order is intended to provided potential trades or claims of stock that could hurt the company's tax position, which is currently $1 billion and could get as high as $2.5 billion by the end of the year. The tax loss may result in future tax savings of $200 million to $400 million.

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