| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers C > Headlines for Calpine Corp. > News item |
Calpine seeks court approval to contribute $45 million to Greenfield Energy plant construction project
By Caroline Salls
Pittsburgh, Aug. 25 - Calpine Corp. requested court approval to make $45 million in capital contributions to the Greenfield Energy Centre construction project, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.
According to the motion, the Greenfield Partnership is a limited partnership formed for the construction and operation of the Greenfield project, a 1,005 MW combined cycle plant in Courtright, Ont.
The general partner of the Greenfield Partnership is owned by a Calpine subsidiary that is a debtor in a bankruptcy proceeding in Canada and a subsidiary of Mitsui & Co., Ltd.
Construction of the Greenfield project began in late 2005, with commercial operation of the project expected to begin in early 2008.
Calpine said the Greenfield Partnership is in financing discussions with prospective lenders to raise non-recourse project debt to finance the remainder of the $258 million in project development costs.
The partnership expects the project financing to be in place by December.
In the interim, Calpine must make the $45 million in capital contributions to the project or risk the dilution of its 50% ownership interest.
Specifically, Calpine will contribute up to $30 million by November, followed by $15 million in additional capital contributions in December.
However, Calpine said it has informed its official committee of unsecured creditors and the second-lien committee that it will only make the $15 million contribution after consulting with them.
If the committees do not agree to the $15 million payment, Calpine said it will not proceed without further court approval.
A hearing is scheduled for Sept. 13.
Calpine, a San Jose, Calif.-based power company, filed for bankruptcy on Dec. 20, 2005. Its Chapter 11 case number is 05-60200.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.