NEW YORK: Another major US power producer and trader, Mirant Corp, has filed for Chapter 11 bankruptcy protection after slumping prices and higher costs left it unable to refinance US$4.9bil in bank and bond debt.
Mirant was hurt by the evaporation of energy trading, accounting changes and government investigations of its accounting in the aftermath of Enron’s collapse. Higher borrowing costs and increased prices for natural gas, which fuels some of Mirant's power plants, contributed to its losses, which totalled about US$2.4bil last year.
The company's Chapter 11 filing is the largest since WorldCom Inc declared bankruptcy a year ago. – Bloomberg