Calpine gets court OK on agreement with South Carolina Pipeline

By Reshmi Basu

New York, Sept. 11 - Calpine Corp. was granted approval of a stipulation agreement with South Carolina Pipeline Corp., which would resolve claims made by SCPC against Calpine and Calpine debtor Columbia Energy LLC, according to a Tuesday ruling from the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, SCPC had asserted four claims against Calpine and Columbia Energy.

Under the agreement, two $920,528 claims made by SCPC - one against Calpine and a separate claim against Columbia Energy for the same amount - would each be allowed as general unsecured claims. The claims relate to alleged obligations under transportation agreements previously held between the two parties.

SCPC's further $160.28 million claim made against Columbia after it rejected one of the transportation agreements would be allowed as a general unsecured claim but reduced to $49.47 million.

Additionally, SCPC would be allowed a $10.72 million claim against Calpine for a rejection of damages claim related to a guaranty agreement.

However, the companies agreed that in order to avoid a double recovery for SCPC, total distribution to SCPC may not exceed $10.72 million.

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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