Staff Writer

Thomaston and Upson County officials sighed in relief at the news of Mirant emerging from bankruptcy Wednesday.

Mirant's Thomaston plant, West Georgia Generating, owes the city of Thomaston and Upson County over $800,000 in back property taxes.

The company was legally prohibited from paying that amount because of the bankruptcy proceedings. Mirant did pay their property taxes in 2004 and 2005.

Mirant emerged from Chapter 11 bankruptcy protection after completing the steps necessary to cause its Plan of Reorganization to become effective, including securing $2.35 billion in exit financing.

Under its Plan of Reorganization, Mirant is converting more than $6 billion of debt and liabilities into equity in the reorganized company and will nearly half its overall debt.

“This is a major milestone for Mirant,” said Edward R. Muller, the company's chairman and chief executive officer. “After 30 months in the bankruptcy process, we have successfully restructured Mirant to provide it with the financial flexibility necessary to be a leader in the industry.

“The talented employees of Mirant will create tremendous value for our shareholders through discipline, creativity and operational excellence.”

Now that the final decision has been made concerning Mirant's bankruptcy, city and county officials return to the waiting game.

Mirant press representative, Dave Thompson, said they will now look into paying back taxes.

“The issue of paying back taxes can now legally be addressed,” he said. “We were legally prohibited from paying the back taxes because of being involved in reorganization proceedings. Now the proceedings are ending we can pay what is owed.”

Thompson could not give a time line as to when taxes will be paid.

Upson County Tax Commissioner Berry Cook said he has had no communication with Mirant since they came out of bankruptcy.

“I haven't heard anything from them,” Cook said. “We are just waiting to hear from them.”

City Manager Patrick Comiskey said Mirant represents one-eighth of Thomaston's property tax revenue.

Mirant owes Thomaston approximately $102,000. Comiskey did not budget for them to pay in 2004, but did in 2005. In a budget session Wednesday he informed city council that he would again budget for Mirant to pay their taxes in 2006.

“We will plan for them to pay, but have something to fall back on if they don't,” Comiskey said. “You never know what will happen because property taxes are due in December. Anything can happen between now and then.”

Comiskey said the city will not budget to receive the back taxes this year.

County Commission Chairman Glenn Collins said he hopes this is a sign of positive things to come for Mirant.

“We expect them to keep paying since they paid their 2004 and 2005 taxes,” Collins said. “We hope they will continue to pay their annual taxes and eventually pay off their 2003 taxes.”