Creditors Object To Calpine's Operating Loan

Law360, New York (January 12, 2006, 12:00 AM EST) -- After filing the largest bankruptcy case of 2005, Calpine Corp. is facing a challenge from its second-lien noteholders, who have asked a bankruptcy court to reconsider their approval of $30 million in lender fees to the embattled energy company.

California-based Calpine filed for Chapter 11 bankruptcy protection in December 2005 in the U.S. Bankruptcy Court for the Southern District of New York. The power plant owner was saddled with $22.5 billion after fuel costs soared.

The lender fees at issue were approved during Calpine’s first day...
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