Bankrupt Mirant seeks more time to file restructuring plan

Bankrupt US energy marketer Mirant has sought a further 90 days in which to file its plan of reorganisation for emerging from Chapter 11 protection from creditors. It filed the request with the US Bankruptcy Court on Monday, and this would be the third such extension granted to the company.

The current period of ‘exclusivity’ with regard to proposing a plan expires on December 31, after which time creditors and other interested parties can put forward their own proposals. A reorganisation plan sets out how the company will settle the claims of creditors and other interested parties, including shareholders.

The company has made substantial progress and still plans to file a plan by December 31, said Mirant chief financial officer Michele Burns. But a delay could occur to push it past that date, given the complexity of the case, which involves 83 debtors and hundreds of thousands of stakeholders, she added.

This type of request is a common, precautionary step in Chapter 11 cases, said Burns. As it has previously stated, Mirant plans to emerge from Chapter 11 in mid-2005, she added.

Mirant filed for bankruptcy in July 2003, having been hit hard by the aftermath of the Enron debacle. Atlanta-based Southern Company had set up Mirant in 2001 to buy and build power plants that would sell electricity into the deregulated regional markets.