Bloomberg Report on Court of Appeals: Decision is Erroneous and Misleading
Thursday, August 05, 2004
For Immediate Release
Pepco is issuing this release to correct an erroneous report issued by Bloomberg at 00:32 on August 5, 2004. Bloomberg's interpretation of yesterday's ruling by the United States Court of Appeals for the 5th Circuit is wrong and misleading.
The Circuit Court did not uphold Mirant's rejection of contracts. The Appeals Court merely resolved a question of jurisdiction to rule on Mirant's attempt to reject the contracts. The Court of Appeals decision specifically states:
"Neither the bankruptcy court nor the district court has ruled on the
merits of Mirant's motion to reject. Further, important issues must
still be resolved before a decision on the merits would be appropriate."
Among other things, the Circuit Court's opinion makes clear that in ruling on Mirant's motion to reject, the district court should consider applying the "more rigorous standard" sought by Pepco rather than the"usual business judgment standard" sought by Mirant.
Whether or not Mirant will be successful in its attempts to reject its obligations to Pepco will now be determined by the lower courts.
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Forward-Looking Statements:
Except for historical statements and discussions, the statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. These statements contain management's beliefs based on information currently available to them and on various assumptions concerning future events. Forward-looking statements are not a guarantee of future performance or events. They are subject to a number of uncertainties and other factors, many of which are outside the company's control. In connection with the transaction, additional important factors that could cause actual results to differ materially from those in the forward-looking statements here in include risks and uncertainties relating to delays in obtaining, or adverse conditions contained in, related regulatory approvals, changes in economic conditions, availability and cost of capital, changes in weather patterns, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines and other presently unknown or unforeseen factors. These uncertainties and factors could cause actual results to differ materially from such statements. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results and prospects of the company.
