SEC rejects Mirant financial statement

The Associated Press 8/19/02 7:22 PM

ATLANTA (AP) -- The Securities and Exchange Commission has rejected the certified financial results Mirant Corp. submitted for 2001. The company said it has begun discussions to resolve the differences.

The SEC requested the certified results as part of an informal inquiry into possible accounting mistakes by the energy trader. The inquiry was prompted by the company's disclosure last month that it might have misstated $253 million in assets and liabilities in 2001.

Atlanta-based Mirant submitted the certified results Wednesday.

"Our statement complies fully with the SEC's order. We are in discussions with the SEC to clarify the order," Mirant spokesman James Peters said Monday.

SEC spokesman John Heine said the commission had not decided what further action might be required in the matter.

In the results submitted to the SEC, Mirant said its accounting problems involved an $85 million overstatement of the value of natural gas inventories, a $100 million overstatement of debt and a possible $68 million overstatement of payments the company expects to collect.

Mirant said it was still working to resolve issues related to the $85 million overstatement. The company said the overstatement relates to accruals made in 1999, 2000 and 2001 from its energy risk management and marketing operations.

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-- Anonymous, August 20, 2002