Calpine Seeks To Inject $35M Into Insurance Unit

Law360, New York (April 3, 2006, 12:00 AM EDT) -- Beleaguered power producer Calpine Corp. has asked the bankruptcy court to authorize a $35-million payment to CPN Insurance Corp., fearing that its internal insurance company will slip into insolvency without the financial boost.

Calpine filed the request Friday in U.S. Bankruptcy Court in Manhattan, hoping that the judge will allow it to help cover the insurer’s projected capital deficit.

CPN Insurance Corp. is a wholly owned unit of Calpine, but was not part of the slew of subsidiaries that entered into Chapter 11 proceedings after the...
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