Posted on 02/11/2004 2:00:01 PM PST by MeneMeneTekelUpharsin
Mirant Corp. is nearing completion on a business plan that will detail its objectives and strategy for meeting those goals once the struggling energy supplier emerges from bankruptcy, a company official said Wednesday. One thing that remains unclear is whether the Atlanta-based company will seek to reduce its staff further or change its management structure. More than 300 of the companys 7,000 positions have been shed since Mirant filed for bankruptcy in Fort Worth, Texas, on July 14.
I won't talk about changes in size or structure, company spokesman David Payne said. The business plan is expected to be finished by the end of next month, though a portion has already been shared with creditors, Payne said. The document wont be released to the public, he said. A separate reorganization plan that must be submitted to the bankruptcy court is still months away from being finished, Payne said. He added that the company expects to emerge from bankruptcy, though there has been no timeframe set for when that might occur.
A plan of reorganization typically outlines how the claims of each class of creditors and interest holders will be treated upon emergence from Chapter 11. When it filed for bankruptcy, Mirant listed $11.4 billion in debt and $20.6 billion in assets. As it works to complete its business and reorganization plans, Mirant also is trying to reduce or restructure its financial obligations to creditors. A bankruptcy judge recently approved Mirant's decision to renegotiate the lease on its headquarters building on Atlanta's perimeter, according to court documents. The revised lease is expected to save Mirant $524,384 a month in rent, documents show.
As part of the new lease, Mirant will be renting six floors of the building instead of 12 and will get a cheaper rate on the 215,541 square feet it will continue to occupy. It will also still rent the trading floor in an adjacent building. The term of the lease has also been reduced from 11.5 years to three years.
IMHO, the common will survive but will be diluted. The percentage of dilution is anyone's guess. More than likely, that unknown keeps those holding it from selling and those wanting it from buying right now. Maybe that is why it has changed very much. Just type "Mirant" in the search box here on Free Republic and you can find many stories related to this company.
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