Mirant plan approved by more than 97% of voters

By Caroline Salls

Pittsburgh, Nov. 16 - Mirant Corp.'s second amended plan of reorganization was accepted by more than 97% of its unsecured creditors and shareholders, according to a company news release.

The plan confirmation hearing is scheduled to begin Dec. 1.

The unsecured creditors voting in favor of the plan hold more than 80% of the unsecured debt that voted.

The plan also was accepted by the unsecured creditor classes of most of Mirant's debtor-subsidiaries, including Mirant Americas Generation LLC, Mirant Americas Energy Marketing and Mirant Americas, Inc.

"In the last three months, we have achieved strong momentum toward emergence from bankruptcy and positioned the new Mirant to be a much stronger competitor," chief restructuring officer M. Michele Burns said in the release.

"Along with our core constituents voting for a plan of reorganization that will cut our total debt by nearly half, we have obtained commitments for over $2.3 billion in loans to finance the business upon exit from Chapter 11.

"Coupled with our current cash and cash equivalents of over $1 billion and expected debt reduction, Mirant can emerge from bankruptcy with one of the strongest balance sheets in the merchant power sector."

Mirant, an Atlanta-based power company, filed for bankruptcy July 14, 2003 in the U.S. Bankruptcy Court for the Northern District of Texas. Its Chapter 11 case number is 03-46590.

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