Posted on 10/18/2005 4:54:57 AM PDT by MeneMeneTekelUpharsin
NEW YORK, Oct 18 (Reuters) - Calpine Corp. (CPN.N: Quote, Profile, Research) has hired a high-profile restructuring team from Kirkland & Ellis to advise its board, the New York Post reported on Tuesday, citing parties suing the troubled power producer. Leading the advisory team are partners Richard Cieri and Jamie Sprayregan, according to lawyers for two parties that are suing Calpine. The Post said its sources acknowledged the hiring of Cieri and Sprayregan did not necessarily mean the cash-strapped company was considering a bankruptcy filing.
More likely, the Post reported, they are advising the company on its alternatives if it loses a crucial legal battle against bondholders slated to begin Nov. 11 in Delaware Chancery Court, the Post reported, citing the lawyers. Calpine has more that $17 billion in junk-rated debt, and amid a host of legal maneuvers is suing bondholder trustees Bank of New York Co. (BK.N: Quote, Profile, Research) and Wilmington Trust. Calpine says it is being illegally frozen out of a $395 million account. Trustees say Calpine illegally dipped into the account to buy natural gas to run its plants. They want Calpine to replace the $370 million it has already used.
Not so sure about that. Stock will probably drop today but it's my suspicion that this 300M withholding of proceeds is just a maneuver by the bond holders to obtain better terms. Checked the Book Value/Share lately? I think it might be more likely asset sales will continue.
Calpine stock is already cheap. Not much more to fall.
They dropped, but not enough to suit me.
Oh my, what has happened to Gray Davis's favorite power company?
I don't know, but makes me happy. Finally making money.
I don't know what's happen to the old CA power gang that you just pinged... I haven't seen "snopercod" post a reply in ages.
It has been awhile.
He and Robert could really dig some good stuff up.
Failing to comprehend here..U R / have been shorting?
for making me money on my short sell!
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