Valuation hearing needed ASAP!
Judge Denies Mirant's Efforts to Suppress Expert Testimony; Expert Valuation Report Reveals Mirant's Efforts to Wrongfully Deny Shareholders Recovery.
The honorable Michael Lynn a Texas Bankrupty Court judge yesterday denied a motion by Mirant Corporation that sought to suppress expert information on the company's valuation. Benjamin Schlesinger and Associates and Kenneth Slater, whose analyses prove that Mirant is attempting to hide millions of dollars in company value, will be heard during the bankruptcy valuation hearing, scheduled to begin on April 12, 2005.
A fair assessment of the value of Mirant's assets is in the best interest of the company and all of its stakeholders. The Equity Holders believe that the company and several of its large creditors are conspiring to intentionally undervalue the Company in order to hide value from shareholders and abuse the bankruptcy process for personal gain.
Mirant's business plan uses energy prices that are more than a year old. Since that time, energy prices have increased, significantly adding to the value of the company. "The company's attempt to use outdated and under-priced fuel oil and gas prices is clear and convincing evidence of the corporate larceny Mirant is attempting to commit," said Paul Syiek, a Mirant shareholder. "This represents just one example of the multiple hide and seek valuation games that Mirant is playing and we hope that Judge Lynn's decision to allow our expert testimony is a sign that he's not going to let Mirant get away with theft."
Mirant's current plan of reorganization calls for all creditors, with the exception of equity holders, to receive 100 percent recovery (90 percent in cash, 10 percent in stock), while shareholders receive nothing. The Equity Committee has agreed that the plan represents a calculated abuse of the bankruptcy process that would have the net effect of improperly wiping out billions of dollars in shareholder value, while large creditors such as Citicorp eventually receive more than 100 percent recovery.
"Mirant was once again attempting to avoid the fact that their experts relied on outdated material despite having access to publicly available current information. The company's attempted suppression of these documents was properly thwarted by the court. These reports are instrumental to determining an accurate and fair value for the company and we are pleased that these reports will be considered for this purpose," said Ed Weisfelner, lead attorney for Mirant's equity committee.
Mirant Corporation's valuation hearing is scheduled to begin April 12, 2005 in Fort Worth, Texas.
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