Mirant to pay $12.5 million fine to settle with CFTC

By Jeff Pines

Washington, Dec. 6 - Mirant Corp. said it will pay a $12.5 million fine to settle its case with the Commodity Futures Trading Commission over whether its Mirant Americas Energy Marketing misrepresented natural gas trading information in 2000 and 2001.

The fine will paid as an allowed claim in the Atlanta-based company's Chapter 11 case. The claim will be subordinated to those of the unsecured creditors but ahead of the equity holders, it said.

"MAEM elected to settle with the CFTC to avoid the expense, distraction and risk of litigation and enable the company's resources to remain fully focused on Chapter 11 emergence," said Doug Miller, Mirant's senior vice president and general counsel, in a news release.

The company neither admitted nor denied the CFTC' allegations.

Mirant filed for bankruptcy on July 14, 2003. Its Chapter 11 case number is 03-46590.

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