Calpine Receives Court Confirmation of Plan of Reorganization



    
    Expects to Emerge From Court Protection Prior to February 7, 2008
    

    SAN JOSE, Calif. and HOUSTON, Dec. 19 /CNW/ -- Calpine Corporation (Pink
Sheets: CPNLQ) announced today that the Honorable Burton R. Lifland of the
United States Bankruptcy Court for the Southern District of New York (the
"Bankruptcy Court") issued a decision confirming Calpine's Sixth Amended Joint
Plan of Reorganization (the "Plan").  The Court ruled that Calpine had met all
of the statutory requirements to confirm its Plan. Calpine remains on track
with its current timetable and expects to emerge from Chapter 11 prior to
February 7, 2008.
    "The Court's confirmation of our Plan is a very welcome step -- and one
of the final steps for us -- as we look to emerge from court protection early
next year," said Robert P. May, Calpine's Chief Executive Officer.  "We
continue to be very proud of what we have been able to accomplish as we work
to emerge as a financially stable, stand-alone company with an improved
competitive position in the energy industry.  I would personally like to thank
Greg Doody for his leadership and stewardship, as well as the efforts of our
entire team who worked on our restructuring.  Additionally, on behalf of the
Board and management team, I would like to thank the employees of Calpine for
their hard work, dedication and loyalty, during these uncertain and
challenging times.  Calpine would not have been able to accomplish all that we
have during our restructuring without the outstanding effort and commitment of
our employees."
    Calpine's General Counsel, who has acted as the company's Chief
Restructuring Officer, Gregory L. Doody, said, "This has been the largest and
most complex reorganization conducted under the new bankruptcy laws, and our
progress as a Company has been truly remarkable.  We'd also like to thank our
dedicated professionals for their tireless efforts throughout this process and
we look forward to continuing our work with our creditors and key
constituencies after our emergence from bankruptcy protection."
    Voting by classes of creditors entitled to vote on the Plan illustrate
broad-based support for the Plan. All ten classes of creditors entitled to
vote on the Plan in fact voted overwhelmingly in favor of the Plan.  Details
of the voting results including votes on a class-by-class basis will be
available on December 19, 2007, at the following website:
http://www.kccllc.net/calpine.
    
    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 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 our Chapter 11 cases and Companies' Creditors
Arrangement Act (CCAA) proceedings of certain of Calpine's Canadian
affiliates, including our ability to successfully reorganize and emerge from
Chapter 11; (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, 
ndunn@calpine.com, both of Calpine Corporation Web Site:
http://www.calpine.com

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CALPINE CORPORATION

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