California Group Attacks Calpine Disclosure Statement

Law360, New York (August 2, 2007, 12:00 AM EDT) -- The state of California has objected to Calpine Corp.’s disclosure statement in its Chapter 11 case, saying the utility did not provide enough information about its projected claim amounts, which could have a negative impact on unsecured creditors.

The California group, which includes the state Department of Water Resources, the state Electricity Oversight Board and the California attorney general, criticized a number of gaping holes in Calpine’s disclosure statement in the U.S. Bankruptcy Court for the Southern District of New York on Wednesday.

Calpine revealed in...
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