Calpine Reaches Claims Settlement With Certain Unsecured Noteholders

    SAN JOSE, Calif. and HOUSTON, Sept. 10 /CNW/ -- Calpine Corporation (OTC
Pink Sheets:   CPNLQ) and its affiliated debtors in possession (the "Debtors")
have reached an agreement in principle with an ad hoc group of holders of the
7.875% Senior Notes due 2008, 7.75% Senior Notes due 2009, 8.625% Senior Notes
due 2010, and 8.5% Senior Notes due 2011 (the "Calpine Unsecured Noteholders")
and the indenture trustee for such unsecured notes (the "Indenture Trustee"). 
This agreement is subject to definitive documentation and approval of the U.S.
Bankruptcy Court.  Under the agreement, approximately $109 million of claims
for make-whole premiums asserted by the Calpine Unsecured Noteholders and
disputed by the Debtors have been compromised and settled and will be allowed
as unsecured claims against Calpine in the aggregate amount of approximately
$54.5 million.  These allowed unsecured claims shall be allocated as follows:
7.875% Senior Notes due 2008 -- $700,000; 7.75% Senior Notes due 2009 --
$2,950,000; 8.625% Senior Notes due 2010 -- $18,250,000; 8.5% Senior Notes due
2011 -- $32,450,000.  In addition, the Debtors have agreed to pay the
reasonable professional fees incurred by the Calpine Unsecured Noteholders and
the Indenture Trustee.  The Debtors will seek approval of this agreement from
the U.S. Bankruptcy Court on October 10, 2007.
    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 Relations, Mel Scott, +1-713-570-4553,, or Investor Relations, Karen Bunton, +1-408-792-1121,, both of Calpine Corporation Web Site:

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