Displeasure with Mirant Corp.'s current restructuring plan sent the company's bank debt down into the mid 60s to 70 range. The bank debt had been trading in the 83-85 context in mid May. Traders said pieces of the company's $1.125 billion revolver maturing in July, its $450 million revolver maturing in April 2004, and its $1.125 billion revolver maturing in July 2005 traded actively last week.
Mirant is looking to push out the maturities on its existing bank debt. The company is offering a first priority lien on the assets in exchange for lender cooperation. But the company is offering the same security for select noteholders if they commit to exchange their exposure for new senior notes--a move which is irking lenders. If creditors do not commit to the plan, the company has threatened to pursue a pre-packaged bankruptcy. All of the debt is currently unsecured, according to a company spokesman. "Our goal is to pay all of our creditors back in full," he said.