Calpine Files Third Amended Plan of Reorganization



    SAN JOSE, Calif. and HOUSTON, Sept. 24 /CNW/ -- Calpine Corporation (OTC
Pink Sheets:   CPNLQ) today announced the company and certain of its
subsidiaries have filed a third Amended Plan of Reorganization (the "Amended
Plan") and related Disclosure Statement (the "Disclosure Statement") with the
United States Bankruptcy Court for the Southern District of New York (the
"U.S. Bankruptcy Court").
    The Amended Plan generally maintains all key terms provided under
Calpine's previously filed Plans, and the Disclosure Statement has been
amended to address certain objections to the Debtors' motion to approve the
Disclosure Statement, which is set to be heard by the U.S. Bankruptcy Court on
September 25. Calpine remains on track to have the Amended Plan confirmed
during the Fourth Quarter 2007.
    As previously announced on Aug. 27, 2007, assuming Calpine's Amended Plan
is confirmed by Dec. 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.
    Allowed claims are anticipated to range from $20.3 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 percent to 100 percent of their
allowed claims.
    For existing holders of allowed interests (primarily holders of existing
Calpine common stock) and holders of allowed subordinated equity securities
claims, Calpine currently estimates that their return would be approximately
$1.94 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.
    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
    
    In addition to historical information, this news release contains
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. Words such as "believe," "intend," "expect," "anticipate,"
"plan," "may," "will" and similar expressions 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. You 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 its ability to successfully reorganize and emerge from
Chapter 11; (ii) its ability to implement its business plan; (iii) financial
results that may be volatile and may not reflect historical trends; (iv)
seasonal fluctuations of results; (v) potential volatility in earnings
associated with fluctuations in prices for commodities such as natural gas and
power; (vi) its ability to manage liquidity needs and comply with financing
obligations; (vii) the direct or indirect effects on the company's business of
its impaired credit including increased cash collateral requirements in
connection with the use of commodity contracts; (viii) transportation of
natural gas and transmission of electricity; (ix) the expiration or
termination of power purchase agreements and the related results on revenues;
(*) risks associated with the operation of power plants including unscheduled
outages; (xi) factors that impact the output of its 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; (xii) risks
associated with power project development and construction activities; (xiii)
its ability to attract, retain and motivate key employees; (xiv) its ability
to attract and retain customers and counterparties; (xv) competition; (xvi)
risks associated with marketing and selling power from plants in the evolving
energy markets; (xvii) present and possible future claims, litigation and
enforcement actions; (xviii) effects of the application of laws or
regulations, including changes in laws or regulations or the interpretation
thereof; and (xix) other risks identified in the company's annual and
quarterly reports on Forms 10-K and 10-Q. All information set forth in this
news release is as of today's date, and the company undertakes no obligation
to update any forward-looking statements, whether as a result of new
information, future developments or otherwise.




For further information:

For further information: Mel Scott, +1-713-570-4553, 
scottm@calpine.com, or Investor Relations, 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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