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...
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