Calpine's Exit Financing Lowered By $400M

Law360, New York (December 18, 2007, 12:00 AM EST) -- Bankrupt energy company Calpine Corp. has agreed to lower its exit financing from $8 billion to $7.6 billion amid concerns that it wouldn't be able to satisfy certain closing conditions.

The agreement, approved Monday by Judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York, was ironed out between Calpine and its lenders: Goldman Sachs, Credit Suisse, Deutsche Bank and Morgan Stanley.

In exchange for reducing the exit financing by $400 million, the lenders gave Calpine an extra week, until...
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