Mirant unsecured creditors ask court to impose sanctions on equity committee

New York, April 7 - Mirant Corp.'s official committee of unsecured creditors asked the U.S. Bankruptcy Court for the Northern District of Texas to impose sanctions on the official equity committee and its counsel - but details of the creditors' accusation will not be disclosed publicly because the court has agreed that they can be filed under seal.

In a filing Wednesday, the creditors committee said it needed to keep its motion confidential because it contains information that could be considered material under the court order setting up a Chinese wall preventing confidential information from being used in trading and analysts' reports. On Thursday the court allowed the documents to be filed under seal.

While the creditors committee has not had direct contact with the equity committee's attorneys, it said it "believes" the motion to impose sanctions "may be opposed."

The creditors committee also asked that a hearing be held as soon as possible because it may have an impact on the upcoming valuation hearing.

It described the alleged action that would be the reason for the sanctions as a "recent event."

Mirant, an Atlanta-based power company, filed for bankruptcy on July 14, 2003. Its Chapter 11 case number is 03-46590.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.