<p>The Mirant Corp. document outlining plans to get the company out of bankruptcy has drawn objections from shareholders, bondholders, creditors and regulators.</p><p>The Atlanta-based power company filed the 11th-largest bankruptcy of all time when it sought protection July 14, 2003, listing assets of $20.57 billion and consolidated debts of $11.4 billion. The company has proposed a turnaround plan that would convert billions in debt to new equity, with existing stock being canceled.</p><p>The so-called disclosure statement outlining a Chapter 11 plan must be approved by the court and is then sent to creditors along with ballots to vote on the plan. If the plan receives enough votes, it then can be confirmed by the court.</p><p>The Securities and Exchange Commission said in its objection to the plan that Mirant improperly provided releases to present and former executives and directors "to the detriment of public investors."</p><p>In court papers filed Friday, the SEC also questioned the plan to issue warrants only to shareholders who vote in favor of the plan.</p><p>Law Debenture Trust Co. of New York joined in questioning the warrants. However, its objection was based on the argument that Mirant's plan violates the Bankruptcy Code by offering shareholders warrants to buy stock in the reorganized company even though higher-ranking creditors like the noteholders aren't expected to be paid in full under the plan.</p><p>On the other end of the spectrum, the official committee of equity security holders objected to the disclosure statement, reiterating its position that there is more than enough value in Mirant to cover creditors' claims.</p><p>The equity committee called the plan unconfirmable and said that even if it were, the disclosure statement doesn't provide enough information on certain aspects of the plan. The equity panel has claimed Mirant is hiding value in its business so it can wipe out equity holders, and creditors and managers can enjoy a windfall once the company is reorganized and new shares issued.</p><p>Mirant has denied the allegations.</p><p>A trial to determine the value of Mirant's business is planned in U.S. Bankruptcy Court in Fort Worth, Texas, with preliminary hearings starting April 11 and arguments planned for April 18. The disclosure statement hearing will follow the trial.</p><p>On another front, trade creditors Mirant does business with _ TransCanada Gas Services Inc., Gas Transmission Northwest Corp., Southern Maryland Electric Cooperative Inc. and the California Power Exchange Corp. _ objected to the disclosure as well.</p><p>TransCanada and Gas Transmission Northwest said in a joint objection the disclosure lacked enough information to make good voting decisions.</p><p>New York City's Environmental Protection Department said it was concerned about the lack of discussion in the disclosure about what will happen to the Grahamsville hydroelectric generation plant operated by Mirant that is scheduled to revert back to city ownership at the end of the year. Water diverted from a reservoir to operate the plant "represents about 25 percent of the city's water supply," the objection said.</p><p>Mirant must address the transition of the plant and assure there is no "adverse impact" to New York's water system when the contract for the plant expires, court papers said.</p>
