Calpine Files Second Amended Plan of Reorganization



    SAN JOSE, Calif. and HOUSTON, Sept. 19 /CNW/ -- Calpine Corporation (OTC
Pink Sheets:   CPNLQ) today announced the company and certain of its
subsidiaries have filed a second Amended Plan of Reorganization (the "Amended
Plan") and related Disclosure Statement (the "Amended Disclosure Statement")
with the United States Bankruptcy Court for the Southern District of New York.
 The Amended Plan filed, maintains all key terms provided under the first
Amended Plan filed by the company in August 2007.  Calpine remains on track to
have the Amended Plan confirmed during the 4th Quarter 2007.
    As previously announced on August 27, 2007, assuming Calpine's Amended
Plan is confirmed by December 31, 2007 and subject to the assumptions set
forth in the Disclosure Statement, Calpine estimates that the reorganized
Calpine will have a midpoint reorganization value of $21.7 billion
(reorganization value is equal to total enterprise value plus estimated
distributable cash).  At emergence, Calpine estimates that its total
enterprise value will be between $19.2 billion to $21.3 billion, with a
midpoint of $20.3 billion, and estimates that distributable cash will be
approximately $1.4 billion.
    "Calpine will continue to move forward through the restructuring process
to emerge as a financially stable, stand-alone company with an improved
competitive position in the energy industry," said Robert P. May, Calpine's
Chief Executive Officer.  "We remain grateful to our employees, customers,
vendors and partners for their support throughout this process."
    Allowed claims are still anticipated to range from $20.1 billion to $22.0
billion after completion of Calpine's claims objection, reconciliation, and
resolution process.  Under this range of potential allowed claims, general
unsecured creditors will receive from 95% to 100% of their allowed claims.
Calpine currently estimates that their return would be approximately $2.05 per
existing share of Calpine common stock (calculated assuming the midpoint of
the reorganization value). Because disputed claims and the total enterprise
value of Calpine upon its emergence have not yet been finally adjudicated, no
assurances can be given that actual recoveries to creditors and interest
holders will not be materially higher or lower.
    A hearing to consider the adequacy of the Disclosure Statement is
currently scheduled for September 25, 2007.  Once the Bankruptcy Court
approves of the Disclosure Statement, the Company can begin the process of
soliciting votes for approval of the Amended Plan.  Following the voting
process, Calpine will ask the Bankruptcy Court to hold a hearing to consider
approval or "confirmation" of the Amended Plan.  If the Court confirms the
Amended Plan, Calpine would emerge from Chapter 11 shortly thereafter.
    Calpine's Amended Plan and Disclosure Statement are available at
http://www.kccllc.net/calpine.
    This release is not intended as a solicitation for a vote on the Amended
Plan.
    
    About Calpine
    
    Calpine Corporation is helping meet the needs of an economy that demands
more and cleaner sources of electricity.  Founded in 1984, Calpine is a major
U.S. power company, currently capable of delivering nearly 24,000 megawatts of
clean, cost-effective, reliable, and fuel-efficient electricity to customers
and communities in 18 states in the U.S.  The company owns, leases, and
operates low-carbon, natural gas-fired, and renewable geothermal power plants.
Using advanced technologies, Calpine generates electricity in a reliable and
environmentally responsible manner for the customers and communities it
serves.  Please visit http://www.calpine.com for more information.
    
    Forward Looking Statement
    
    This news release discusses certain matters that may be considered
"forward-looking" statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended, including statements regarding the intent, belief or
current expectations of Calpine Corporation and its subsidiaries ("the
Company") and its management and uses words such as "believe," "intend,"
"expect," "anticipate," "plan," "may," "will" and similar expressions to
identify forward-looking statements.  Such statements include, among others,
those concerning the Company's expected financial performance and strategic
and operational plans, as well as all assumptions, expectations, predictions,
intentions or beliefs about future events.  Readers are cautioned that any
such forward-looking statements are not guarantees of future performance and
that a number of risks and uncertainties could cause actual results to differ
materially from those anticipated in the forward-looking statements.  Such
risks and uncertainties include, but are not limited to: (i) the risks and
uncertainties associated with the Company's Chapter 11 cases and Companies'
Creditors Arrangement Act proceedings, including impact on operations; (ii)
the Company's ability to attract, retain and motivate key employees and
successfully implement new strategies; (iii) the Company's ability to
successfully reorganize and emerge from Chapter 11; (iv) the Company's ability
to attract and retain customers and counterparties; (v) the Company's ability
to implement its business plan; (vi) financial results that may be volatile
and may not reflect historical trends; (vii) the Company's ability to manage
liquidity needs and comply with financing obligations; (viii) the direct or
indirect effects on the Company's business of its impaired credit including
increased cash collateral requirements; (ix) the expiration or termination of
the Company's power purchase agreements and the related results on revenues; (*)
potential volatility in earnings and requirements for cash collateral
associated with the use of commodity contracts; (xi) price and supply of
natural gas; (xii) risks associated with power project development,
acquisition and construction activities; (xiii) risks associated with the
operation of power plants, including unscheduled outages of operating plants;
(xiv) factors that impact the output of the Company's geothermal resources and
generation facilities, including unusual or unexpected steam field well and
pipeline maintenance and variables associated with the waste water injection
projects that supply added water to the steam reservoir; (xv) quarterly and
seasonal fluctuations of the Company's results; (xvi) competition; (xvii)
risks associated with marketing and selling power from plants in the evolving
energy markets; (xviii) present and possible future claims, litigation and
enforcement actions; (xix) effects of the application of laws or regulations,
including changes in laws or regulations or the interpretation thereof; and
(xx) other risks identified the risk factors identified in its Annual Report
on Form 10-K for the year ended December 31, 2006, and its Quarterly Report on
Form 10-Q for the quarter ended June 30, 2007, which can also be found on the
Company's website at http://www.calpine.com.  All information set forth in
this news release is as of today's date, and the Company undertakes no duty to
update this information.




For further information:

For further information: Media, Mel Scott, +1-713-570-4553, 
scottm@calpine.com, or Investors, Karen Bunton, +1-408-792-1121, 
karenb@calpine.com, both of Calpine Corporation Web Site:
http://www.calpine.com                  http://www.kccllc.net/calpine

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CALPINE CORPORATION

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