Posted on 12/22/2005 11:52:17 AM PST by MeneMeneTekelUpharsin
Permission to Continue to Perform Under Power Trading Contracts Interim Approval to Use $500 Million of Its $2 Billion DIP Financing Facility Authorization to Continue Paying Employee Compensation and Benefits
Calpine received interim Court approval for the immediate use of up to $500 million of its $2 billion DIP financing facility. The company has received commitments for the DIP facility from Deutsche Bank and Credit Suisse First Boston. The Court has scheduled a hearing for January 25, 2006 to consider final approval of the entire $2 billion DIP financing facility. "The DIP financing provides us with the much needed liquidity and flexibility to run our business, and should give assurance to our natural gas suppliers, gas transportation companies, and other vendors and suppliers that they will be paid going forward on a current basis," said Mr. May. "In turn, our customers can continue to rely on our power plants for the electricity and other energy services they depend on Calpine to provide."
Calpine also received authorization from the Court to pay pre-petition and post-petition employee wages and salaries, and provide benefits, including healthcare, disability, life insurance and certain vacation benefits, during its restructuring under Chapter 11. On December 20, 2005, Calpine and many of its subsidiaries, including Calpine Generating Company, LLC, filed voluntary petitions to restructure under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York in Manhattan. The case was assigned to the Honorable Burton R. Lifland and the lead case number is 05-60200 (BRL).
The company has established a toll-free restructuring information line for employees, suppliers, customers, investors and other interested parties, 1-866-504-6370. More information on Calpine's restructuring is also available on the company's web site, www.calpine.com. For access to Court documents and other general information about the Chapter 11 cases, please visit www.kccllc.net/calpine.
A major power company, Calpine Corporation supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance, and operational services. Calpine was founded in 1984.
Rest can be found at above link...
Fairly routine.
Another Jim Cramer Pump Bites Dust!
You got that right. Cramer is borderline criminal.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.