Calpine Gets OK To Repay $626.1M With DIP Loan

Law360, New York (May 10, 2006, 12:00 AM EDT) -- Paying off a debt early has a $96 million price tag for Calpine Corporation, but the bankrupt power company has decided it is worth it. The company won authorization from its lenders on Tuesday to use its DIP loan to repay $646.1 million to bondholders.

The company said in a filing with the Securities and Exchange Commission that a new amendment in its DIP financing agreement permits it to use some of the loan to repay the company’s first-lien bondholders.

The bondholders however, have objected to...
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