We use cookies on this site to enable your digital experience. By continuing to use this site, you are agreeing to our cookie policy. close

Calpine Settles Defaulted Bondholder Claims

Law360 (April 19, 2007, 12:00 AM EDT) -- Bankrupt energy company Calpine Corp. said Thursday that it had reached a preliminary settlement with a bondholder committee that will eliminate more than $8 billion in claims.

If approved by the U.S. Bankruptcy Court in Manhattan and a Canadian court, the settlement would replace more than $12 billion of claims with a single nominal claim of $3.5 billion.

Additionally, the ad hoc committee of bondholders agreed that its actual recovery would be no greater than the principal, accrued pre-petition and post-petition interest, and up to $8...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.