Mirant Corp.'s bank debt climbed slightly last week after the company was able to achieve what creditors believe is a small victory in court. Mirant's '03 bank debt was trading in the 53-55 range and its '05 loan was changing hands in the 75-78 context, last week. The company was able to obtain a permanent restraining order enjoining the Federal Energy Regulation Commission (FERC) and Potomac Electric Power Company (Pepco) from initiating any conflicting proceedings against Mirant's motion to reject an out-of-market agreement to purchase power from Pepco, explained a Mirant spokesman.
The judge will first give an order to decide whether the hearing on the motion will be held in the bankruptcy court or in the district court, due to FERC's jurisdiction, and then there will be a hearing on the actual motion, the spokesman added. FERC is involved in the matter because Pepco is a regulated entity. Earlier this month, Mirant's revolver maturing in 2005 was trading in the 70-71 level and the '03 revolver was moving in the 46-461/2 context.