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  1. 678 Posts.
    “Mirant Can't Refinance Debt, Files for Bankruptcy!

    July 14 (Bloomberg) -- Mirant Corp., which produces electricity in 14 states, filed one of the largest bankruptcies in U.S. history after slumping power prices and higher costs left it unable to refinance $4.9 billion in bank and bond debt.

    The filing is the largest since WorldCom Inc. declared bankruptcy a year ago and the 11th biggest in U.S. history by assets, court filings show.

    Atlanta-based Mirant is the third major energy producer to file for bankruptcy in the past two months, joining Xcel Energy Inc.'s NRG Energy unit and PG&E Corp.'s National Energy Group unit.

    In November, Mirant said bookkeeping errors caused it to overstate profit by $41 million since 1999, and that U.S. federal prosecutors were investigating the energy company's trading and accounting.

    Bondholder State Street Bank and Trust Co., owed more than $486 million, is listed in the filing as Mirant's largest unsecured creditor.

    Bear Stearns Securities Corp. is owed $447.3 million, according to the filing.”

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