San Jose, CA-based Calpine Corp. Friday spurned the $11 billion marriage proposal from Princeton, NJ-based NRG Energy Inc., but the eastern independent power plant operator indicated it would not give up trying to link up with its western-based equivalent. Calpine said NRG’s offer is “inadequate and materially undervalues” its asset portfolio of late-model natural gas-fired plants and the nation’s largest geothermal power fleet.
Articles from Jose
Considerably lighter in debt and megawatts, San Jose, CA-based Calpine Corp. Thursday emerged from Chapter 11 bankruptcy, closing its $7.3 billion exit financing facility, including a $300 million bridge loan the reorganized independent power plant developer/operator expects to pay off by the end of the first quarter.
San Jose, CA-based Calpine Corp., the aggressive independent power plant developer/operator, filed its joint plan of reorganization and the customary disclosure statement with the U.S. Bankruptcy Court for the Southern District of New York, saying it expects to have the plan confirmed by the court and creditors during the fourth quarter this year.
With $2 billion in debtor-in-possession (DIP) financing from two major banks, San Jose, CA-based Calpine Corp. as widely expected filed for voluntary Chapter 11 bankruptcy Tuesday in the same federal court in lower Manhattan in which Enron Corp. four years earlier made a similar filing.
With its board dismissing its CEO/founder and Wall Street expecting a bankruptcy filing soon, San Jose, CA-based Calpine Corp. received a reprieve of sorts in a Delaware court on Friday, giving the company until Jan. 22 to return $313 million to bondholders from the sale last summer of substantially all of it oil and natural gas assets.
With its board having recently dismissed its CEO/founder and Wall Street expecting a bankruptcy filing soon, San Jose, CA-based Calpine Corp. received a reprieve of sorts in a Delaware court on Friday, giving the company until Jan. 22 to return $313 million to bondholders from the sale last summer of substantially all of it oil and natural gas assets. Whether the added seven weeks will allow the national power plant developer/operator to avoid a cash implosion was unclear Friday, but the company’s financial situation appeared to be worsening almost daily.
Fresh from a shakeup at the top of its debt-plagued organization, San Jose, CA-based Calpine Corp. Thursday said it has asked the Delaware Chancery Court for 90 days to restore only part of the $313 million in natural gas asset sales proceeds that the court last month ruled had been misappropriated by the troubled power plant developer/operator. The court’s Vice Chancellor Leo Strine had ordered that the funds be restored to a special account earmarked for senior bondholders. Calpine said it is continuing to evaluate its options, including the possibility of filing for bankruptcy.
While it continues to face challenges and criticism from the financial community for its continuing losses and relatively heavy debt load, San Jose, CA-based Calpine Corp. sees the wholesale power market turning around in key areas and is determined to play a role in importing liquefied natural gas (LNG) along the West Coast of North America, according to the CEO Peter Cartwright.
In tossing aside a major segment in its aggressive strategy to become the nation’s largest independent producer of gas-fired power generation, San Jose, CA-based Calpine Corp. raised questions about how it will fill the fuel gap for its 27,000 MW portfolio. A heavier reliance on liquefied natural gas (LNG) imports may be part of the company’s redesigned future, a Calpine spokesperson told NGI.
Because the rest of its remaining U.S. natural gas reserves are now up for potential sale, San Jose, CA-based Calpine Corp. Thursday disclosed in a regulatory filing that the federal Securities and Exchange Commission has requested information and documents on the company’s revision to its proved oil and natural gas reserves and its April restatement of earnings. The SEC’s enforcement division made the request of the power plant developer/operator.