SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 28, 2001
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Mirant Corporation
(Exact name of registrant as specified in its charter)
Delaware 001-16107 58-2056305
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(State or other jurisdiction (Commission File (IRS Employer Identification
of incorporation) Number) No.)
1155 Perimeter Center West Suite 100, Atlanta, Georgia 30338
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (678) 579-5000
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N/A
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(Former name or former address, if changed since last report.)
Item 9. Regulation FD Disclosure
This 8-K is being furnished to provide updated and additional information
related to our exposure from Enron Corporation and its various subsidiaries
("Enron").
The following table provides greater detail of our approximate pre-tax
financial exposure as of November 28, 2001 from Enron before any provisions. We
do not anticipate that income for the fourth quarter of 2001 will reflect any
changes in the value of our contracts with Enron after November 28 2001. We are
currently in the process of determining the amount, if any, of provisions
related to our exposure that may be included in our 2001 financial statements.
Without With
Enron Subsidiary Enron Subsidiary
Entity Set-off Set-off
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(in millions)
Europe:
Enron Nordic/Capital Trade(1)(3) $8.4 $8.4
Enron Nordic/Capital Trade(1)(3) (6.9)
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Total Europe Trading Exposure 8.4 1.5(2)
US:
Enron North America
Financial Mark-to-Market(1) 75.1 75.1
Gas Physicals(1) 33.0 33.0
Enron Power Marketing (Mark-to-Market/ A/R Exp.)(1) (9.1)
Canada:
Enron Canada/Enron NA(1)(3) 1.1 (4.0)
Collateral (Cash) (38.7) (38.7)
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Total U.S. & Canada Trading Exposure 70.5 56.3(2)
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Net Mirant Trading Exposure $78.9 $57.8(2)
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(1) These amounts represent netting of all commodities within the same entity
consistent with master contract agreements.
(2) These amounts take into account certain additional set-off claims with
different Enron entities that we intend aggressively to pursue.
(3) Certain amounts are subject to currency fluctuations.
In addition our 49% owned United Kingdom affiliate, Western Power
Distribution (WPD), is approximately a 15% equity investor in the 1,875-megawatt
Teesside Power Station, located in northern England. Enron participates in
Teesside through its European affiliates as an owner, an operator, and a power
purchaser of the project. The potential impact of Enron insolvency on the
operational and financial performance of Teesside has not been fully determined.
Failure by Enron to perform on all or a portion of its obligations related to
Teesside would create significant risk as to the ongoing viability of the
project at current investment levels. The amount of our indirect ownership in
Teesside at risk is approximately $32 million.
Caution regarding forward-looking statements:
Some of the statements provided herein, including estimates of our exposure from
Enron, certain forward-looking information, in addition to historical
information. We caution that there can be no assurance that such indicative
results will be realized and that there are various important factors that could
cause actual results to differ materially from those indicated in the
forward-looking statements, such as, but not limited to (i) interpretation of
bankruptcy laws concerning amounts due and the ability to set off certain claims
with various Enron entities; (ii) indirect effects of the Enron bankruptcy,
including reduced liquidity in commodity supply and pricing in the trading
markets and our ability to effectively replace terminated contracts with which
Enron was the counterparty; (iii) with respect to European and Canadian
exposure, fluctuations in currency exchange rates; and (vi) litigation exposure
that may emerge in order for us to defend our various positions and assertions
with respect to the Enron situation. We expressly disclaim any obligation to
update any of the forward-looking information presented herein, including any
exposure fluctuations.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
Date: December 5, 2001 MIRANT CORPORATION
` By /s/James A. Ward
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James A. Ward
Senior Vice President, Finance
And Accounting
(Principal Accounting Officer)