Mirant gets extension to letters of credit

By Caroline Salls

Pittsburgh, May 20 - Mirant Corp. was granted an extension of its pre-bankruptcy letters of credit Thursday by the U.S. Bankruptcy Court for the Northern District of Texas.

The maturity on the letters of credit was extended to June 30 from May 31.

In its emergency motion filed Wednesday, Mirant said it has been negotiating with the lenders of its four-year credit agreement dated July 17, 2001 to settle the lenders' claims.

While the company and the lenders have reached an agreement in principal on the claims, Mirant said it is still trying to gain the support of the official committee of unsecured creditors.

Mirant said if the letters-of-credit are drawn before the potential agreement is finalized, the agreement will be in jeopardy.

Mirant, an Atlanta-based power company, filed for bankruptcy on July 14, 2003. Its Chapter 11 case number is 03-46590.

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