HSBC Objects To Calpine Prepayment

Law360, New York (June 4, 2007, 12:00 AM EDT) -- Investment bank HSBC Bank USA has lodged a formal objection to a bankruptcy court order allowing energy company Calpine Corp. to prepay $2.5 billion in secured debt, arguing that the prepayment improperly limits its claims.

In a motion filed on Friday in the U.S. Bankruptcy Court for the Southern District of New York, HSBC, which acts as the second priority indenture trustee representing the holders of $640 million in secured notes, claims that the bankruptcy court erred in approving Calpine's prepayment.

“This is an appeal from...
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.