Posted on 07/13/2005 11:51:03 AM PDT by MeneMeneTekelUpharsin
FORT WORTH - U.S. Bankruptcy Judge Michael Lynn gave holders of Mirant Corp. common stock some hope that they can share in the distribution of assets of the bankrupt Atlanta energy company. In a ruling, Lynn said financial models of the reorganized company should be changed to reflect values greater than the range of $7 billion to $8.3 billion.
Mirant's common shareholders have said that the power generator, which went into bankruptcy in July 2003, is worth as much as $13.7 billion. That figure, unlike the lower number offered by Mirant, would allow common shareholders to receive some of the distribution in reorganization. In most bankruptcies, common stock holders seldom get anything after preferences are given to secured bank lenders, bondholders and equity lenders.
Lynn will conduct a full value appraisal of the company. Mirant, which was spun off from the Southern Co. utility and operates power generators nationwide, was caught in the electricity industry downturn of 2002-03. Although the company has only two generating plants in Texas, Mirant was allowed to put its bankruptcy in the Fort Worth court. Lynn's ruling requires that a number of changes be made to the proposed business plan, including the addition of $832.6 million in assets and the inclusion of the value of Mirant property in the Philippines. Such values had been missing from the reorganization plan Mirant proposed. Lynn said that if the value of Mirant exceeds $11 billion, he would consider common stockholders "in the money."
Too early to specifically say, but it looks like equity is in the money on this one. It has been almost three years of "hell" for many stockholders, but we have overcome through the efforts of our Shareholder committee and Mike Willingham. Willingham got all of this started on the Yahoo message board, believe it or not.
I told you ... aw, skip it.
I believe you of all FR posters need to read this. You might do some additional reading too, and see what is going to happen. Thanks for your earlier input, although incorrect.
Thanks for being nice and not posting ugly replies. Duly noted and forever remembered.
Thought some of you fellas might like to have a ping about the impending outcome.
I tried. I honestly tried to let people know.
Here's to you! :-D
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