Free Republic

FORT WORTH, Texas — Bankrupt Atlanta-based energy company Mirant Corp. can have an additional eight months before filing its reorganization plan with the bankruptcy court, a judge here ruled Wednesday. In the course of arguing over the extension, though, a Mirant consultant delivered some bad news for stockholders: There will be no money left for them unless something changes before the case is done. When Mirant entered Chapter 11 last year, it looked as if there would be something left for shareholders once creditors got paid. The blow to shareholders came during questioning by U.S. Bankruptcy Court Judge Michael Lynn...

FORT WORTH - U.S. Bankruptcy Judge Michael Lynn of Fort Worth denied federal regulators the power to force bankrupt Mirant Corp. to honor discounted contracts to deliver wholesale electricity to Washington, D.C., and its suburbs. The ruling Wednesday, which is without precedent, continues an injunction that prevents the Federal Energy Regulatory Commission from forcing Mirant to honor contracts to Potomac Electric Power Co. Mirant of Atlanta, Ga., filed its bankruptcy case in Fort Worth in July and began taking steps to dissolve contracts. Potomac Electric asked energy regulators to intervene to prevent Mirant from abandoning long-term contracts to sell power...