Bondholders Dealt Setback In Calpine Debt Struggle

Law360, New York (May 11, 2006, 12:00 AM EDT) -- Tuning out the protests of Calpine Corp.’s first-lien bondholders, a federal bankruptcy judge has authorized the beleaguered power giant to repay all of its outstanding $646.1 million debt to the bondholder group, while temporarily suspending a $96 million prepayment penalty.

On Wednesday, U.S. Bankruptcy Judge Burton Lifland ruled that Calpine may pay off its first-lien bondholders but did not have to immediately shell out for a nearly $100 million fine, as the holders had previously requested.

The news came as a blow to the bondholders, who...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.