Calpine is talking to other companies about being acquired, but expects to emerge from bankruptcy as a standalone entity, according company officials who commented on the company’s bankruptcy plan. Calpine’s plan to emerge from Chapter 11 protection promises to satisfy creditors in full—and if anything is left holds value for stockholders. The plan was filed with the Southern District of New York Bankruptcy Court June 20 “We don’t need to sell any more assets,” said Greg Doody, Calpine executive vice president. The San Jose-based company holds over 4,000 MW of power plant capacity in California. Calpine hung onto most of its fossil fuel-fired and geothermal assets during its reorganization. It also signed a long-term contract with San Diego Gas & Electric for the output of its Otay Mesa plant beginning in 2009. The company estimates that if its reorganization plan is approved, it would be worth between $19.2 billion and $21.3 billion. It would retain $1.4 billion in cash for distribution. Creditors are expected to receive between 100 percent and 91 percent of their claims. The company had $18 billion in debt going into bankruptcy in December, 2005. Doody said it expects to have $11 billion in debt if the reorganization plan is approved. Still pending, however, is Calpine’s dispute with the Department of Water Resources. Calpine sued the state entity to allow it to get out of the state contracts it entered during the 2000-01 energy crisis. The case remains before the U.S. Court of Appeals for the Second Circuit.
