Mirant Corp. bank debt did not appear to be affected much by a U.S. District Court decision to deny the company's motion to reject an agreement between Mirant and Potomac Electric Power Co. (Pepco). Mirant's Official Committee of Unsecured Creditors had supported this motion, according to court filings. The bank debt of Mirant is unsecured. Following the news, Mirant's '03 bank debt was said to be quoted in the 581/2-591/2 range, the '04 around the 62 level, and the '05 in the 771/2-781/2 context. None of the pieces are believed to have traded during the holiday week. One dealer quoted the '03 bank debt only a half a point softer.
"We are going to appeal the decision to a higher court," said a Mirant spokesman. Earlier this year, Mirant's bank debt rose after the company filed a motion with the courts to reject certain contracts with Pepco. Mirant and Pepco subsequently reached a settlement agreement to restructure two power purchase agreements that were under consideration for rejection.