Court Approves Calpine Disclosure Statement; Company to Begin Solicitation of Creditor and Shareholder Votes on Its Plan of Reorganization



    
    Confirmation Hearing Scheduled to Begin December 18, 2007
    

    SAN JOSE, Calif. and HOUSTON, Sept. 25 /CNW/ -- Calpine Corporation (OTC
Pink Sheets:   CPNLQ) today announced that the Honorable Burton R. Lifland of
the United States Bankruptcy Court for the Southern District of New York (the
"Bankruptcy Court") approved the Disclosure Statement filed in connection with
the company's proposed Plan of Reorganization and authorized Calpine to begin
soliciting votes from its creditors and shareholders on its Plan of
Reorganization.  Calpine's confirmation hearing for the Bankruptcy Court to
consider approval of the Plan of Reorganization has been scheduled to commence
on December 18, 2007.
    Calpine will shortly begin the process of soliciting votes for the Plan
of Reorganization from eligible claim and interest holders.  The Official
Committee of Unsecured Creditors in Calpine's Chapter 11 proceedings supported
entry of the order approving the Disclosure Statement.  Assuming the requisite
approvals are received and the Bankruptcy Court confirms the Plan of
Reorganization under the company's current timetable, Calpine expects to
emerge from Chapter 11 prior to January 31, 2008.
    "With the Court's authorization, we can now begin the solicitation of
stakeholder votes on our Plan of Reorganization, which is a very important
step forward in our restructuring process," said Robert P. May, Calpine's
Chief Executive Officer.  "We continue to be very proud of what we have
accomplished thus far as we work to emerge as a financially stable,
stand-alone company with an improved competitive position in the energy
industry.  On behalf of my entire management team, we remain grateful for our
dedicated employees' unwavering support throughout our restructuring process."
    As previously announced on August 27, 2007, assuming Calpine's amended
Plan of Reorganization 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
    Additionally, Calpine received a commitment for an amended and upsized
exit facility from Goldman Sachs, Credit Suisse, Deutsche Bank, and Morgan
Stanley.  Simultaneously with the filing of its original Plan of
Reorganization, Calpine filed a motion to enter into a commitment letter, pay
associated commitment and other fees, and to amend and upsize the existing
debtor in possession financing facility.  On July 11, 2007, the Bankruptcy
Court approved the upsized exit facility that will provide for up to $8
billion in secured financing, some $3 billion more than the current exit
facility, on terms that Calpine views as favorable.  The commitment to fund
the exit facility expires on January 31, 2008.
    
    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: 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

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CALPINE CORPORATION

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