Mirant bondholders, unsecured creditors committee seek change to plan vote

By Caroline Salls

Pittsburgh, April 26 - Mirant Americas Generation, LLC's ad hoc committee of bondholders and committee of unsecured creditors requested that some creditors of Mirant Corp. be considered impaired and allowed to vote on Mirant Corp.'s plan of reorganization.

The bondholders committee filed its motion Tuesday and the unsecured creditors committee Monday with the U.S. Bankruptcy Court for the Northern District of Texas.

According to the bondholders' motion, the plan considers long-term holders of notes issued by Mirant Americas Generation to be unimpaired.

This classification presumes that they have already accepted the plan and are unable to vote on it.

"Thus, the plan effectively disenfranchises creditors holding approximately $1.7 billion in claims," the bondholders' filing said.

The bondholders said the plan alters the long-term noteholders' legal and contractual rights and not only does not solve defaults under the indenture but triggers new defaults as well.

The bondholders also said the plan subordinates the long-term notes "to billions of dollars in new debt, fundamentally altering the terms of the long-term noteholders' original economic bargain."

In its motion Monday, the unsecured creditors committee said the plan impairs the claims of the long-term noteholders.

The committee said the plan also fails to fix defaults under the indenture, including the merger, consolidation and transfer of assets and the issuance and debt and incurrence of liens by the consolidated company.

Mirant, an Atlanta-based power company, filed for bankruptcy on July 14, 2003. Its Chapter 11 case number is 03-46590.

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