Calpine Corp

New York, NY: (May-15-07) Calpine Corp., a now bankrupt power company, reached a settlement of virtually all major-cross border disputes between it and its Canadian subsidiaries. The settlement agreement seeks to resolve more than $250 million of intercompany claims in the Canadian insolvency proceedings, and about $1.1 billion of claims in Calpine's bankruptcy case in the United States. The settlement is aimed at furthering the company's restructuring efforts. The proposed settlement requires approval from both the Canadian Court and the US Bankruptcy Court. Calpine's board of directors and some creditors must also approve the settlement. The agreement resulted from last month's deal that would clear more than $8 billion of claims against Calpine. Calpine, which has nearly 25,000 megawatts of generating capacity in 18 states in the United States, has said it expects to file its reorganization plan by June 20. That plan is geared towards the company's emergence from Chapter 11 protection. [REUTERS: CALPINE SETTLEMENT]

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Published on May-16-07