Posted on 12/16/2004 3:45:38 PM PST by MeneMeneTekelUpharsin
Mirant's Period of Exclusivity Extended 30 Days
ATLANTA, Dec. 16 /PRNewswire-FirstCall/ -- Today, Mirant (Pink Sheets: MIRKQ - News) reiterated that it would not make its out-of-market payments to Pepco unless ordered to do so by the Bankruptcy Court or the District Court. Further, Mirant sought to rectify a misperception by stating that no court has ordered it to continue with these payments under its back- to-back agreement with Pepco. On December 15, Judge Michael Lynn, U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, denied a motion by Pepco that sought to order Mirant to continue making its out-of-market payments under the agreement. The Judge stated that he would revisit the issue in coming weeks.
Mirant believes that its actions are in line with its fiduciary responsibility under bankruptcy law to protect the value of its estate. From July 2003 to October 2004, Mirant paid Pepco approximately $370 million for power under the agreement -- an amount significantly higher than market rates. The company notes that its non-payment has no effect on the delivery of power to Pepco's customers. On December 15, Judge Lynn also approved a 30-day extension to Mirant's period of exclusivity. The company's current period of exclusivity was set to expire December 31, 2004. The extension runs until January 31, 2005.
The period of exclusivity grants Mirant the sole right to file a plan of reorganization that sets out how the claims of each class of creditors and interest holders will be settled in its Chapter 11 case. The extension was supported by Mirant's bankruptcy committees and enables the company to continue important discussions on the plan with those committees.
Another interesting development and chart pattern on Mirant. Maybe the Lord will be kind to us and forgive us for our foolish ways...
Unless it's pure speculation, this is an encouraging sign for Mirant shareholders whom I expected to end up with shares worth nothing when the dust settles.
LOL. We'll see. One or the other will probably need to apologize for disparaging the opinion of the opposition. If you're right, I'll acknowledge such. If I'm right...an appropriate response may be in order. :-D
LOL. We'll see. One or the other will probably need to apologize for disparaging the opinion of the opposition. If you're right, I'll acknowledge such. If I'm right...an appropriate response may be in order. :-D
Why, my friend, does this stock rise at all on that much volume in one day? It begs to be answered...
Look at the scale - it's a 6 cent jump. My guess is that it is day traders (day gamblers).
I'm not ripping Mirant shareholders, and I hope you didn't take it that way. What I meant to convey is that shareholders in a bankrupt company usually end up with nothing, despite the merits.
That certainly is an interesting and dramatic jump!
Isn't it though? And, it was on a massive volume increase. I disagree on the "daytraders" bit. The volume jump was phenomenal based on the average daily volume of this stock. Bears watching (no pun intended).
Things are looking UP !! And on INCREASED volume, too.
That's a good sign. :^)
Yes, I believe they are. The banks are hollering "no equity", but there is equity. They're just hoping to get a few more believers while "someone" is buying huge blocks of this. Check out MIRKQ on the Business Week website and look at the block trade sizes. It is certainly NOT long-time holders selling. What have we got to lose now that we haven't already lost? This is speculators who have bought at around .20 selling out at a big profit now.
I worked at Mirant in Georiga for about six months-security work (laid off). The CEO and all the fat cats are very comfy with free drinks, lunch etc. They waste tons of money and gave themselves nice hefty raises last year or was it bonuses- I forget. Most of the regular employees are gone-replaced by temp workers which cost far less in terms of benefits and salary. The poor stockholders are being taken to the cleaners by these irresponsible 'company' officers. The people that work there are very nice and gave many gifts to soldiers last Christmas,a but they are merely pawns. I don't think it is right that these people can run a company into the ground...all of the officers should have been fired immediately after the bankruptcy.
Interesting if it could be confirmed. We gather the "fat cats" are trying to take us to the cleaners. Thus, the request for a shareholder meeting at which time we'll make some changes. Hide and watch, wait and see.
Believe me these people have the best...They waste more money than you can imagine. I saw it up close.
Quite a few corporations have the same problem. However, the Judge did side with Mirant and ruled they don't have to make the payments. Pepco will appeal. It is a fight worth watching, so, hide and watch, wait and see. :-)
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