Mirant’s Wall St comeback to boost RP unit — Lotilla

US energy firm Mirant’s operations in the Philippines will likely be boosted by its relisting on the New York Stock Exchange (NYSE) after it emerged from bankruptcy protection last Jan. 3, Energy Secretary Raphael Lotilla said.

"Mirant values its assets in the Philippines. I believe they will remain committed," Lotilla said.

An industry source said Mirant Corp.’s Wall St. comeback will further strengthen the power firm’s position in the electricity market in the Philippines.

Mirant Philippines is the largest private power producer in the country, supplying over 2,000 megawatts (MW) of power.

"Aside from strengthening its current position in the power industry, the relisting of the shares in the NYSE will also boost investors’ confidence in the company and will improve its credit outlook," the source said.

The company’s common stock is listed under the symbol MIR. Edward R. Muller, Mirant chairman and chief executive officer, rang the opening bell to signal the start of the stock’s relisting on the exchange.

The company has earlier completed the requirements necessary to usher in its plan of reorganization, including securing $2.35 billion in exit financing.

Under its reorganization plan, Mirant will convert more than $6 billion of debt into equity in the reorganized company and will nearly halve its overall debt.

Mirant’s US and Canadian units filed for bankruptcy protection on July 14, 2003 but its other operations, including Mirant Philippines, did not follow suit.

Mirant Philippines president and CEO J.R. Harris said the emergence and relisting of the parent firm will position Mirant for future success in the nation’s electricity market.

"With our corporate parent out of bankruptcy, we are better able to position Mirant as a stronger player in a vital industry in this country," Harris said.

Harris said while the Chapter 11 bankruptcy filing in the US did not in any way affect the operations of Mirant’s Philippine business units, "it was a long and challenging process for the entire Mirant organization."

Mirant Philippines has always been a strong partner in providing reliable and cost effective electricity to help meet the country’s development needs.

In 2004, it initiated the largest rural electrification program ever implemented by a private corporation, benefitting over 1,000 barangays nationwide.

The power firm is committed to undertake the electrification of an additional 500 barangays this year as part of its corporate social responsibility program.

Mirant Philippines also has a stake in the 1,200-MW Ilijan natural gas project.

Mirant Corp. is a competitive energy company that produces and sells electricity in the United States, the Caribbean, and the Philippines. It owns or leases more than 18,000 MW of electric generating capacity globally and operates an asset management and energy marketing organization from its headquarters in Atlanta.