CAMBRIDGE, Mass., Nov. 28 /PRNewswire/ -- In the early hours of Sunday morning, New York subsidiaries of Atlanta-based energy company Mirant Corporation and Haverstraw-Stony Point Central School District, Town of Haverstraw, Town of Stony Point, and County of Rockland resolved long-running tax disputes concerning two of Mirant's power generating plants. The parties reached an agreement in principle, signing a Term Sheet at 1:48 AM on November 19. The disputes dated back to 1995, and have worked their way through both state and federal courts. Problems intensified after Mirant and its New York subsidiaries filed for Chapter 11 bankruptcy in 2003. Negotiations picked up in recent weeks, and the parties began meeting in person with the mediator on Friday morning at the Harvard Law School in Cambridge, Massachusetts. They negotiated all day on Friday, returning early on Saturday morning and negotiating into the early hours of Sunday, when a deal was struck. Mediator Elizabeth Warren, Professor of Law at Harvard Law School, had praise for all those involved: "The problems were complex, and the negotiations were difficult. But all parties worked extremely hard to find the best possible solution." Warren added, "The representatives of Haverstraw, Stony Point and Rockland County were aggressive as they worked to protect the homeowners and school children who depend on tax revenues from the Mirant plants. They were tough negotiators, but they also recognized the enormous gains that would come from settling this very expensive and long- running litigation. I was deeply impressed by their skills and professionalism, and by their dedication to the welfare of their communities." At the mediator's direction, details of the agreement will remain confidential until the final papers are signed. The mediator has also insisted that the discussions during the negotiations remain confidential. "What matters is the very good outcome," said Warren. "Both sides can stop hemorrhaging money for legal fees and can work with stable financial projections. The agreement resolving the existing tax disputes will allow the New York subsidiaries of Mirant to exit bankruptcy, and it will provide the taxing authorities with a much more stable revenue base. This is a win for everyone." DATASOURCE: Harvard Law School CONTACT: Jane Wagner of Harvard Law School, +1-617-495-3101 Web site: http://www.mirant.com/

Copyright