Judge puts off Mirant lawsuits to give company time to reorganize

Oct. 24, 2003 — A bankruptcy judge has delayed until Nov. 5 several lawsuits against Mirant Corp. so that the energy company’s insurance companies can pay off already incurred legal expenses.

U.S. Bankruptcy Judge D. Michael Lynn gave the order Thursday in Fort Worth, Texas. Current and former officers of Mirant have been hit with 98 lawsuits from investors and customers over possible securities violations, ratepayer disputes and various claims against the company, its current and previous officers and some affiliates and third parties, the Associated Press reported.

The three sets of insurance policies at issue are worth $570 million.

Mirant had argued that it needs the officers and directors named in the lawsuits for the crucial reorganization of the company rather than for the defense of lawsuits.

Mirant’s web address is http://www.mirant.com

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