Can Mirant Survive?
Several years ago, many energy players faced difficulties after the Enron scandal. Enron disrupted the whole energy industry, and many industry participants scrambled to refinance their debt loads. While some banks provided refinancing to some companies, creditors made a disciplinary example out of Mirant. The once well-respected company was refused the refinancing and forced into Chapter 11 (reorganization) bankruptcy.
The company has been undergoing a lengthy court procedure to come to an agreement. Mirant has announced the positive momentum towards its exit from bankruptcy. The company has much milestone to accomplish, but the game is not over. I will continue to gauge Mirant’s progress during this critical and delicate phase. This type of play is not for the faint of heart and not recommended for those who do not conduct their own thorough due diligence.
Sam Park owns OTC pinksheet common shares of Mirant.