Mirant equity committee asks court for shareholders' meeting

By Jeff Pines

Washington, Nov. 22 - Mirant Corp.'s official equity committee believes a new board of directors is needed and wants a shareholders' meeting to put one in place.

The committee filed its request for a court-ordered shareholders' meeting Monday with the U.S. Bankruptcy Court for the Northern District of Texas.

According to the committee as long as the replacement of the board, and managers reporting to board, is not intended to derail the reorganization process, case law supports the request.

The Atlanta-based power company has not held a shareholders' meeting in more than 18 months, the committee said.

The company said it cancelled the 2004 meeting to save $1 million in printing costs, which to the committee sounds awfully shaky since it says the company has about $1.5 billion in cash.

The committee believes the board has breached its responsibility to the shareholders by letting management push a business plan that "understates projected revenues and ignores significant assets of value, all in an apparent effort to depress artificially the debtors' enterprise value."

Mirant filed for bankruptcy on July 14, 2003. Its Chapter 11 case number is 03-46590.

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