This excerpt taken from the MIR 10-Q filed Nov 9, 2007.
Total Cash, Cash Equivalents and Credit Facility Availability
At September 30, 2007, we had total cash, cash equivalents, and credit facility availability of approximately $7.030 billion. The table below sets forth total cash, cash equivalents and availability of credit facilities of Mirant Corporation and its subsidiaries (in millions):
We consider all short-term investments with an original maturity of three months or less to be cash equivalents. At September 30, 2007, except for amounts held in bank accounts to cover upcoming payables, all of our cash and cash equivalents were invested in AAA-rated money market funds. During the fourth quarter of 2007, we transferred all of our cash investments into AAA-rated U.S. Treasury money market funds.
Except for existing cash on hand, Mirant Corporation, Mirant Americas Generation and Mirant North America are dependent on the distributions and dividends of their subsidiaries for liquidity. The ability of Mirant North America and its subsidiary Mirant Mid-Atlantic to pay distributions and dividends is restricted under the terms of their debt agreements and leverage lease documentation, respectively. At September 30, 2007, Mirant North America had distributed
to its parent, Mirant Americas Generation, all available cash that was permitted to be distributed under the terms of its debt agreements, leaving approximately $946 million at Mirant North America and its subsidiaries. Approximately $251 million of such amount was held by Mirant Mid-Atlantic which, as of September 30, 2007, met the ratio tests under the leveraged lease documents for distribution to Mirant North America. After taking into account the financial results of Mirant North America for the nine months ended September 30, 2007, we expect Mirant North America will be able to distribute approximately $166 million to its parent in November 2007.
Mirant Lovett emerged from bankruptcy on October 2, 2007. As a result, on this date, approximately $7 million of cash at Mirant Lovett was no longer considered restricted, but will be subject to the Mirant North America debt agreement restrictions described above.