Calpine gets court OK of RockGen plant settlement

By Reshmi Basu

New York, Dec. 13 - Calpine Corp. received court approval Thursday of a settlement agreement between Calpine RockGen Energy LLC and the trustee for the forbearing certificate holders of the RockGen power plant facility that would prevent the trustee from exercising the right to foreclose on the RockGen facility.

Judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York said the deal was in the best interest of the company.

As previously reported, the trustee has the right to foreclose on the Christiana, Wis., facility under a previous forbearance agreement with Calpine and the facility's owner lessors.

Under the settlement agreement, the owner lessors of the RockGen facility will sell the facility to Calpine RockGen, and the trustee will be allowed a $150 million claim against Calpine.

The trustee's claim will in turn be sold. If the sale of the settled trustee claim yields more than sufficient cash to make required payments, the allowed amount of the trustee claim will be reduced to the amount required.

Additionally, the forbearance agreement will be terminated.

Calpine, a San Jose, Calif., 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.