Calpine granted approval of Greenleaf facilities contract assumption settlement

By Jennifer Lanning Drey

Portland, Ore., April 24 - Calpine Corp. obtained court approval of a settlement agreement allowing the company to assume contracts associated with the continuing operation of its Greenleaf facilities, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, under the settlement agreement, the Greenleaf lessors will exercise their rights to purchase Greenleaf notes so they will not only own the equity interests in the Greenleaf facilities, but also the debt obligations.

Immediately following the note purchase, the owner lessors will waive defaults under the assumed contracts, as well as other defaults identified in the settlement agreement that will allow for the release of $5.23 million in distributable cash from the Greenleaf facilities' restricted accounts.

In addition, upon the effective date of the settlement agreement, Calpine and the lessors will amend various contracts and leases and will ratify operative documents at the Greenleaf facilities to facilitate their operation during and after Calpine's bankruptcy.

Calpine Greenleaf Inc. will also pay up to $1.37 million in fees, costs and expenses related to the Greenleaf facility lease and participation agreement.

According to a previously filed motion, the Greenleaf facilities are valuable to the company's estates because the net present value of the combined free cash flows of these two facilities is estimated to range between $13.7 million and $16.5 million on a pre-tax basis.

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.