Calpine Allowed To Seek Post-Petition Financing

Law360, New York (March 6, 2007, 12:00 AM EST) -- A judge on Monday granted energy provider Calpine Corp.’s request to obtain a $5 billion replacement of its debtor-in-possession loan to facilitate its exit-funding refinancing and debt repayment.

Several lenders have objected since Calpine filed its motion earlier this year, concerned over whether they would be able to seek pre-payments or damages. Judge Burton R. Lifland considered the objections when issuing his decision, and calculated a percentage of damages that the secured lenders could claim.

In its motion, Calpine requested permission to obtain replacement post-petition financing,...
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