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To: Taki who wrote (116594)	7/15/2003 2:08:37 AM
From: Taki	Read Replies (1) \| Respond to of 150070

MIR 2.03.OH,CH.11UPDATE 1-Mirant files for bankruptcy protection July 14, 2003 11:59pm ET (Reuters) NEW YORK, July 14 (Reuters) - Power producer and trader Mirant Corp. filed for a prepackaged Chapter 11 bankruptcy late on Monday after failing to reach agreements with bondholders and banks to restructure its debt. Court papers filed with the U.S. Bankruptcy court of Northern District of Texas showed that the Atlanta-based company listed $20.6 billion in assets and $11.4 billion in debt. Mirant said in a statement it had secured a commitment, subject to court approval, for $500 million in debtor-in-possession (DIP) financing to provide additional working capital. As of July 11, Mirant and its subsidiaries had about $1.17 billion in total cash. Mirant, one of many energy companies struggling to restructure debt, has been in talks for months with its bank lenders and bondholders. "Although we received broad support from the company's creditors on our restructuring plan, failure to obtain the timely support of our key lenders created substantial uncertainty in the marketplace about the outcome of these discussions," Mirant said. That uncertainty strained Mirant's liquidity and threatened its business plan, so in the midst of a slump in energy prices and a tepid economy, Mirant said it had opted for Chapter 11. Its bankruptcy filing is the 10th largest bankruptcy by assets in U.S. history, according to BankruptcyData.com. Mirant asked its bank lenders in late June to approve a prepackaged bankruptcy plan that had already been approved by bondholders, and required less support than restructuring its debt and credit facilities outside the bankruptcy courts. But 10 days later, the company said two-thirds of its bondholders were in support of a sweetened debt exchange offer that could prevent a bankruptcy filing, and said it was optimistic it would win support from the 85 percent of bondholders needed for the offer to go through. Mirant on Monday said that its reorganization plan had not been developed, so it was uncertain how the interests of its creditors and stockholders would be addressed. In conjunction with the bankruptcy, Mirant terminated its offers to exchange its 2.5 percent convertible debentures due in 2021 and its 7.4 percent senior notes due 2004. Mirant Americas Generation LLC also terminated its offer to exchange 7.625 percent senior notes due 2006.