Calpine Wooed By Alternative Chapter 11 Plan

Law360, New York (July 27, 2007, 12:00 AM EDT) -- Calpine Corp. told regulators Friday that it is considering an alternative reorganization plan after being approached by unnamed parties that have proposed offering guaranteed recoveries to stakeholders of the bankrupt utility.

Calpine said in a filing with the U.S. Securities and Exchange Commission that “certain parties” have recently contacted it about potentially sponsoring an alternative plan of reorganization premised upon a structure that will provide guaranteed distributions to the debtors’ stakeholders.

“Consistent with their overall efforts to maximize the value of their estates for the benefit...
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