Mirant seeks bankruptcy protection - WALB.com, Albany News, Weather, Sports

Mirant seeks bankruptcy protection

July 15, 2003 

 (Atlanta-AP) -- Energy supplier Mirant Corporation has filed for bankruptcy after struggling for more than a year with heavy debt and weak revenues.

The Atlanta-based company filed its Chapter Eleven petition Monday -- the day before a $1.1 billion payment was due. State Street Bank and Trust Company of Quincy, Massachusetts, holds the largest unsecured claim against Mirant -- $486.1 million. Bear and Stearns Securities Corporation in New York is owed $447.3 million.

Mirant asked the court today to treat the filing as a complex bankruptcy case, which would expedite the process. In making the request, Mirant cited the amount of its debt and that there are at least 50 interested parties.

The filing is the latest milestone of financial turmoil for the company, which joined its rivals in furiously selling assets, trimming the size of trading contracts and refinancing debt since the 2001 demise of Enron Corporation.

Shares of Mirant -- a spinoff of Southern Company -- are down about 95 percent from a peak of $47 in 2001.

The largest American bankruptcies since 1980, including the date filed and assets based on the latest audited figures available:

1. WorldCom Inc., July 21, 2002, $103.9 billion
2. Enron Corp., Dec. 2, 2001, $63.4 billion
3. Conseco Inc., Dec. 18, 2002, $61.4 billion
4. Texaco Inc., April 12, 1987, $35.9 billion
5. Financial Corp. of America, Sept. 9, 1988, $33.9billion
6. Global Crossing Ltd., Jan. 28, 2002, $30.2 billion
7. UAL Corp., Dec. 9, 2002, $25.2 billion
8. Adelphia Communications, June 25, 2002, $21.5 billion
9. Pacific Gas and Electric Co., April 6, 2001, $21.5 billion
10. MCorp, March 31, 1989, $20.2 billion
11. Mirant Corp., July 14, 2003, $19.4 billion

Source: research firm BankruptcyData.com. Mirant lists $20.6 billion in assets in its filing.

posted at 11:00AM by dave.miller@walb.com