Calpine To Settle Last Big Bankruptcy Claim For $110M

Law360, New York (June 2, 2011, 9:42 PM EDT) -- Houston-based Calpine Corp. announced Thursday that it has proposed a deal to settle the last remaining major claim in the power company's bankruptcy proceedings for $110 million.

The claim relates to third-lien debt generated by Calpine subsidiary Calpine Generating Co. LLC that was originally worth more than $300 million, according to court documents. Calpine said the deal would be funded by the sale of Calpine stock that the company had held in reserve to satisfy claims remaining after it emerged from bankruptcy in January 2008. The...
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