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) July 8, 2002
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Mirant Corporation
(Exact name of registrant as specified in its charter)
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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 5. Other
Recent Developments
On July 2, 2002, Mirant received notice that a shareholders' derivative lawsuit
was filed on June 26, 2002 in the Superior Court of Fulton County, Georgia
against Mirant and its directors. The lawsuit alleges that the directors
breached their fiduciary duties by allowing the company to engage in alleged
unlawful or improper practices in the California energy market during 2000 and
2001. The company practices complained of in the derivative lawsuit largely
mirror those complained of in the shareholder litigation, the rate payer
litigation and the California attorney general lawsuits that have been
previously disclosed by the company. The complaint seeks unspecified damages on
behalf of the company, including attorneys' fees, costs and expenses and
punitive damages.
In connection with the previously disclosed State Line litigation, as of July 3,
2002, two additional lawsuits have been settled pending court approval. The
terms of both settlements involve cash payments to the plaintiffs, with such
payments being fully covered by insurance.
Also, as previously disclosed, as part of the implementation of the Philippine
Electric Reform Act, an inter-agency committee has been charged with reviewing
all contracts with independent power producers ("IPPs") in the Philippines,
including various energy conversion agreements ("ECAs") with Mirant
subsidiaries. On July 5, 2002, it was reported that 29 of the 35 contracts with
IPPs in the Philippines were identified by the committee as potentially
containing "legal or financial terms" that require further review or action.
These contracts include Mirant's contracts concerning the following facilities:
Sual, Pagbilao, Ilijan and Navotas. We do not know the extent of any potential
issues in connection with the contracts, except that 13 projects, including
Mirant's Ilijan and Navotas projects, were identified as having "minor issues,"
11 projects, including Mirant's Pagbilao project, were identified as having
"financial issues" and 5 projects, including Mirant's Sual project, were
identified as having "legal and financial issues that need to be referred for
appropriate study, renegotiation and possible legal action." Mirant does not
believe that the committee's review will result in changes that will materially
affect Mirant's financial condition or prospects."
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: July 8, 2002 MIRANT CORPORATION
By /s/ James A. Ward
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James A. Ward
Senior Vice President and
Controller
(Principal Accounting Officer)