Calpine $63 million Blue Spruce project debt repayment approved

By Caroline Salls

Pittsburgh, May 9 - Calpine Corp. obtained court approval to repay $63 million of project debt of non-debtor Blue Spruce Energy Center, LLC using borrowings from Calpine's replacement debtor-in-possession facility, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the motion, Blue Spruce has about $63 million outstanding under an amortizing term loan with Beal Bank, maturing in May 2018.

Calpine said Blue Spruce's assets serve as the only security for the Beal Bank loan.

By using borrowings from its $5 billion DIP facility to repay the Beal Bank loan, Calpine said it and Blue Spruce will recognize significant interest savings, thereby increasing the long-term profitability of the Blue Spruce project.

Calpine, a San Jose, Calif., power company, filed for bankruptcy on Dec. 20, 2005. Its Chapter 11 case number is 05-60200.

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