MIR » Topics » Valuations Performed

This excerpt taken from the MIR 8-K filed Jan 19, 2005.
            Valuations Performed


In conjunction with the Plan, the Debtors determined it was necessary to estimate the post-Effective Date values for each of Mirant, MAG, New MAG Holdco and MIRMA (collectively, the “Valued Entities”).  Accordingly, the Debtors directed The Blackstone Group L.P. (“Blackstone”) to prepare a valuation analysis of the Valued Entities for purposes of this Disclosure Statement.


In preparing its analyses, Blackstone (1) reviewed historical operating and financial results of the Debtors; (2) reviewed certain financial projections prepared by the Debtors for the operations of the Valued Entities, including the Projections in Exhibit “D;” (3) discussed current operations and prospects of the operating businesses with the Debtors; (4) reviewed the Debtors’ assumptions underlying such projections; (5) considered the market values of publicly-traded companies that Blackstone and the Debtors believe are in businesses reasonably comparable to the operating businesses of the Valued Entities; and (6) made such other examinations and




performed such other analyses as Blackstone deemed necessary and appropriate for the purposes of the valuations.


In preparing its analyses, Blackstone assumed and relied upon the accuracy and completeness of all financial and other information that was available to it from public sources and that was provided to Blackstone by the Debtors or their representatives and has not assumed any responsibility for the independent verification of any such information.  With respect to the financial projections supplied to Blackstone, Blackstone assumed the accuracy thereof and assumed that such projections were prepared reasonably in good faith and on a basis reflecting the best available estimates and judgments of the Debtors as to the future operating and financial performance of the Valued Entities.  Such projections assume the Valued Entities will operate the businesses reflected in their business plans and that such businesses perform as expected in these business plans.


Blackstone did not make or obtain any independent evaluation of the Valued Entities’ assets, nor did Blackstone verify any of the information it reviewed.



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