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Thursday, June 2, 2011

Calpine settles largest remaining bankruptcy claim, (NYSE: CPN)

Calpine Corp (CPN.N) reached a $110 million agreement to settle the last significant claim from its 2005 bankruptcy, the power producer said on Thursday. Thursday's deal resolves a claim by holders of third-lien debt issued by Calpine affiliate Calpine Generating Co LLC, or CalGen. The claim was originally worth in excess of $300 million, according to Calpine spokeswoman Norma Dunn. The claim will be paid from a reserve fund set up to cover claims that were still outstanding when Calpine exited bankruptcy in 2008. The reserve holds 44 million shares that had a market value of about $680 million as of the close of trading on Wednesday.

Calpine Corporation (Calpine) is an independent wholesale power company in the United States. Shares of CPN fell by 1.28% or $-0.199/share to $15.301. In the past year, the shares have traded as low as $11.88 and as high as $17.10. On average, 2059200 shares of CPN exchange hands on a given day and today's volume is recorded at 1423444.