Calpine Settles Second Lien Claim Dispute

Law360, New York (July 12, 2007, 12:00 AM EDT) -- Energy company Calpine Corp. said Thursday that it had reached an agreement to repay its second lien debtholders with $100 million in claims as part of its Chapter 11 reorganization.

Under the settlement, which is still subject to court approval, about $282 million in claims asserted by the unofficial committee of second lien debtholders against Calpine will be trimmed down to a secured claim for $60 million and an unsecured claim for $40 million.

“This agreement in principle, if documented and approved, represents an important step...
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