Calpine Reaches Settlement with Second Lien Debtholders



    SAN JOSE, Calif. and HOUSTON, Feb. 1 /CNW/ -- Calpine Corporation (Pink
Sheets: CPNLQ; NYSE:   CPN) announced today that it has reached an agreement in
principle (the "Settlement") with its Unofficial Committee of Second Lien
Debtholders ("Unofficial Committee") with respect to the Second Lien
Debtholders' remaining secured claims for payment of compound and default
interest, as well as claims for the transaction fee of Houlihan Lokey, the
Unofficial Committee's financial advisors.  Under the Settlement, which is
subject to definitive documentation, the Second Lien Debtholders shall receive
their allocable share of $51,836,191.00 in cash in full and final satisfaction
of such secured claims, which amount shall be funded through: (1) an allowed
general unsecured claim in Calpine's chapter 11 case in the amount of $65
million (subject to a $51,836,191.00 cap on distributions based on Calpine's
total enterprise value set forth in its plan of reorganization), which the
Second Lien Debtholders intend to assign for value; plus (2) an additional
cash payment from Calpine to the extent required.  The Second Lien Debtholders
will not be permitted to retain any amounts in excess of $51,836,191.00 in
connection with the assignment of such claim with any excess being paid to
Calpine.
    The Settlement will result in Second Lien Debtholders receiving the
following additional amounts over and above amounts previously allowed by the
Bankruptcy Court: holders of the 8.5 percent notes will receive $13,334,509;
holders of the 8.75 percent notes will receive $10,817,498; holders of the
9.875 percent notes will receive $2,210,264; holders of the floating rate
notes will receive $4,906,139; and the holders of term loan debt will receive
$20,567,780.  Upon receipt of the amounts set forth above, the Second Lien
Debtholders, the indenture trustee and term loan agent shall be deemed to have
waived any and all rights that they now have or may hereafter have against
other parties or property including, without limitation, under or with respect
to the subordination provisions contained in Calpine's 6.00 percent Contingent
Senior Convertible Notes due September 30, 2014 and the 7.750 percent
Contingent Senior Convertible Notes due June 1, 2015.
    Calpine Corporation emerged from chapter 11 on January 31, 2008 and 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 release contains forward-
looking statements within the meaning of Section 27A of the Securities Act and
Section 21E of the Exchange Act. We use 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 our 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 ability to successfully implement Calpine's
Plan of Reorganization as confirmed; (ii) our ability to implement our
business plan; (iii) financial results that may be volatile and may not
reflect historical trends; (iv) seasonal fluctuations of our results; (v)
potential volatility in earnings associated with fluctuations in prices for
commodities such as natural gas and power; (vi) our ability to manage
liquidity needs and comply with covenants related to our existing financing
obligations and anticipated exit financing; (vii) the direct or indirect
effects on our business of our 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 our 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 our
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) our ability to attract, retain and motivate
key employees; (xiv) our ability to attract and retain customers and contract
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
from time-to-time in Calpine's reports and registration statements filed with
the SEC, including, without limitation, the risk factors identified in its
Annual Report on Form 10-K for the year ended December 31, 2006 and Quarterly
Reports on Form 10-Q. Actual results or developments may differ materially
from the expectations expressed or implied in the forward-looking statements
and Calpine undertakes no obligation to update any such statements. Unless
specified otherwise, all information set forth in this release is as of
today's date and Calpine undertakes no duty to update this information. For
additional information about Calpine's chapter 11 reorganization or general
business operations, please refer to Calpine's Annual Report on Form 10-K for
the fiscal year ended December 31, 2006, Calpine's Quarterly Reports on Form
10-Q, and any other recent Calpine report to the Securities and Exchange
Commission. These filings are available by visiting the Securities and
Exchange Commission's website at http://www.sec.gov or Calpine's website at
http://www.calpine.com.




For further information:

For further information: Media Relations, Mel Scott, +1-713-570-4553, 
scottm@calpine.com, or Investor Relations, Norma Dunn, +1-713-830-8883, 
norma.dunn@calpine.com, both of Calpine Corporation Web Site:
http://www.calpine.com/

Organization Profile

CALPINE CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890