Project: Mirant Americas Generation, LLC (MAGI)
Location: Multiple locations

Overview:

In July 2003, Mirant Corporation filed for Chapter 11 Bankruptcy protection. Mirant Americas Generation, LLC (MAGI), an affiliate of Mirant, owns and operates about 10,000 megawatts (MW) of coal, oil and natural gas-fired generating assets in five regions of the United States. E3 was asked by the Official Committee of Unsecured Creditors of MAGI to be their energy consultant and provide restructuring assistance for their assets in California, Maryland, Massachusetts, and New York.  

E3 Services Provided:

• As its energy consultant, E3 advised the Committee on various aspects of the company’s business plans and current operations, developing asset cash flow models based on an independent market assessment and plant-specific analyses.

• Provided analyses of the asset management and power marketing functions, including:

• Collateral support adequacy
• Market-to-market evaluations of hedges
• Organizational and plant operating assessments
• Capital expenditure review, and
• Evaluation of environmental strategies and associated capital expenditures

• Supported Kroll Zolfo Cooper (global advisory and interim management firm) in evaluating the economics and operating implications associated with the creation of a standalone MAGI entity should the need arise for the MAGI Creditors Committee to file its own “Plan of Reorganization.”

Project Spotlights:

• E3’s market analysis aided in establishing the solvency of MAGI.
  
  
• Provided benefit to the creditor in settlement negotiations when the analysis of MAGI as a standalone entity demonstrated a structure and strategy that would result in a par-plus accrued return