Calpine Creditors Ask Court To Ban Speculative Trading

Law360, New York (February 8, 2006, 12:00 AM EST) -- Fearing potential repercussions, creditors of Calpine Corp. have asked the U.S. Bankruptcy Court to ensure that rules are in place to prevent the bankrupt independent power producer from engaging in speculative energy trading.

On Tuesday, the lawyers representing unsecured creditors and holders of Calpine’s second lien debt filed motions requesting that safeguards be applied to the company’s electricity and natural gas trades.

Until risk management policies can be determined, lawyers for these groups contend that the company's trading arm, Calpine Energy Services, should be restricted in...
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