Mirant, Enron claims settlement agreement approved

By Caroline Salls

Pittsburgh, July 14 - Mirant Corp.'s claims settlement agreement with Enron Corp. was approved by the U.S. Bankruptcy Court for the Northern District of Texas, according to a Thursday filing.

Under the settlement, Enron will be allowed a $12.25 million general unsecured claim against Mirant in exchange for withdrawing litigation over $816,000 in claims connected to termination of a Mirant stock purchase agreement.

In the motion for approval of the settlement agreement, Mirant said that while it believes the Enron claims should be disallowed entirely, the complexities and costs associated with litigation make the agreement fair and reasonable.

In 2001, Mirant and Enron entered a stock purchase agreement that allowed Mirant a 50% controlling interest in EcoElectrica LP, a 540-megawatt electric generation facility in Puerto Rico.

Subsequently, Enron filed for bankruptcy. The litigation arose from Enron's assertion that Mirant illegally terminated the stock purchase agreement after the bankruptcy filing.

Enron, a Houston-based energy company, emerged from bankruptcy on Nov. 18, 2004.

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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