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Calpine obtains court approval of agreements with first-priority, first-lien debt holders
By Reshmi Basu
New York, Nov. 27 - Calpine Corp. obtained court approval of two different stipulation settlements, which the company said were necessary for its efforts to exit Chapter 11 bankruptcy, according to Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.
The company received the green light of one agreement, which would resolve a dispute over default interest claims asserted by the first-priority debt representatives against CalGen, an operating subsidiary of Calpine.
As previously reported, the agreement would fix make-whole and default interest claims asserted by the representatives.
Under the agreement, first-priority debt representatives would have a $20.88 million allowed unsecured damage claim against CalGen debtors and a $29.11 million allowed unsecured claim against CalGen debtors.
Also, Calpine shall pay $3.68 million for legal and administrative costs.
Meanwhile Calpine was also granted approval of a stipulation agreement with the holders of first-lien debt, which would resolve all of the outstanding claims of Calpine's senior pre-petition creditors.
Under the agreement, holders of the first-lien debt shall receive a $50.46 million allowed secured claim plus interest at the contract 9 5/8% non-default date from the repayment date through the date of the entry of the order and a $33.64 million allowed general unsecured claim plus interest at the contract 9 5/8% non-default rate from the repayment date through the date of the entry of an order.
Calpine, a San Jose, Calif., power company, filed for bankruptcy on Dec. 20, 2005. Its Chapter 11 case number is 05-60200.
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