With $20.6 billion in assets and $11.4 billion in debt, the power producer and trader is the largest U.S. bankruptcy so far this year. It filed for protection after failing to reach agreements with bondholders and banks to restructure its debt.
Some analysts cited Mirant’s reliance on the discredited energy trading market as a key source of revenue for its failure to secure the backing of its lenders.
“Grand Bahama Power Company has been excluded from Mirant’s filing of voluntary petitions for reorgnisation under Chapter 11 of the US Bankruptcy Code. In addition, Mirant’s generation businesses in the Philippines, Curacao, Trinidad and Jamaica are excluded from the filing,” the company said in a press statement.
“Grand Bahama Power continues to function as a separate business unit, generate and deliver electricity, meet all contractual obligations, and support community development programmes. The company’s credit terms remain unchanged and vendors will continue to be paid as usual. All day-today operations continue as usual. Mirant continues to provide technical support to the company.
Mirant owns or controls more than 22,000 megawatts of electric generating capacity in North America, the Caribbean and the Philippines.
The Nassau Guardian
