Houston-based independent producer Rosetta Resources Inc. announced Monday it has reached a partial settlement with Chapter 11-bound Calpine Corp. over the independent power generation developer/operator’s sale two years ago of its North American oil and natural gas reserves. No dollar amount was assigned to the partial deal that is subject to approval by the U.S. Bankruptcy Court, Southern District of New York.
Calpine alleges that it was cheated out of about $400 million, according to a disclosure statement filed June 20 as part of its bankruptcy proceeding, and at that time said it was filing a lawsuit against Rosetta (see Daily GPI, June 22).
Rosetta’s top executive admitted that the partial deal does not resolve the heated issue that he called “baseless,” alleging fraud on Rosetta’s part in the previous sale of oil and gas properties. “Calpine has asserted baseless fraudulent claims against Rosetta, which remain pending,” said Rosetta CEO Charles Chambers.
With court approval, Rosetta said both it and Calpine will, “without prejudice,” reach agreement on four outstanding claims:
Chambers said the agreement was a “positive step,” resolving a number of open issues between the two companies. “We are working diligently to resolve, including through a successful defense of the significant ongoing litigation, the outstanding matters with Calpine, and at the same time maintaining our focus on delivering solid operational results.”
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