Fund Accuses Calpine Of Underestimating Value

Law360, New York (April 10, 2007, 12:00 AM EDT) -- Bankrupt energy provider Calpine Corp. has underestimated its value by about $11 billion, according to one of the company’s major shareholders.

Hedge fund Rainmac Fund Ltd., which owns $26 million in Calpine stock, has accused the company of underestimating its worth as it puts together a reorganization plan for its eventual emergence from Chapter 11 bankruptcy protection.

“Given the failure of the debtors to energetically pursue maximum values, one is left with the worrisome conclusion that they simply do not know what they are doing other...
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