Energy company Mirant on Wednesday filed a reorganisation plan in US bankruptcy court that starts a process intending to allow the company to emerge from Chapter 11 protection by mid-year.

Under the plan, Mirant said its debt would be reduced by more than $5bn while all US and international assets and operations would remain intact.

Atlanta-based Mirant filed for bankruptcy protection in July 2003 during an industry downturn sparked by the collapse of Enron in late 2001.

Mirant said the plan reflected a structure that had received support from committees of its two groups of creditors and would serve as a sound platform for final negotiations.

The plan would implement a settlement with California utilities and public agencies announced last week related to the state?s energy crisis in 2000-2001.

All current equity would be canceled, with holders of current equity to receive any surplus value after creditors were paid in full plus the right to a pro-rata share of warrants issued by the new company.

Mirant said it was also looking at the possibility of overseas reincorporation for any new Mirant parent with an impending change in ownership upon emergence from Chapter 11 as about half of its operating income comes from non-U.S assets.

The company said it expects a hearing on its disclosure statement in bankruptcy court in late April.

Mirant owns or controls more than 17,000 megawatts of electricity generation in the United States, Philippines and the Caribbean.