Calpine Settles With Canadian Subsidiaries

Law360, New York (May 15, 2007, 12:00 AM EDT) -- Bankrupt energy company Calpine Corp. has reached a settlement with its Canadian subsidiaries which, if approved, will eliminate $1.1 billion in claims in the company’s Chapter 11 proceedings.

The agreement, disclosed on Tuesday in an 8-k filing with the U.S. Securities and Exchange Commission, will resolve $250 million in intercompany claims, filed against Calpine by several of its Canadian branches that have also filed for bankrupcy.

“This settlement is another major step forward in our restructuring efforts. It represents a global settlement of virtually all major...
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