Mirant obtains court approval of $48 million tax settlement

By Jennifer Lanning Drey

Portland, Ore., Dec. 15 - Mirant Corp. obtained court approval of a settlement between its New York subsidiaries still in bankruptcy and various local jurisdictions where it had disputed property taxes, according to a company news release.

The settlement will net $48 million for the company and resolves pending disputes related to refunds sought by Mirant for property taxes paid for 1995 through 2003 and unpaid taxes assessed for 2003 through 2006 at its Bowline and Lovett electric generating facilities.

Under the settlement, Mirant will receive refunds of $163 million for 1995 through 2003 and will pay unpaid taxes of about $115 million for 2003 through 2006, according to the release.

As a result of the refunds and the reduction in unpaid taxes under the settlement, Mirant will recognize a gain of about $244 million in the fourth quarter, the company said in the release.

Mirant produces and sells electricity in the United States, the Caribbean and the Philippines.

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