Calpine gets court OK on stipulation agreement with Gulf South Pipeline

By Rebecca Melvin

New York, Jan. 15 - Calpine Corp. received court approval of a stipulation agreement between Calpine Energy Services LP (CES) and Gulf South Pipeline Co. LP, resolving a claims dispute between the parties relating to a firm transportation service agreement, according to an order of the U.S. Bankruptcy Court for the Southern District of New York Tuesday.

Under the settlement, Gulf South has an allowed general unsecured claim against CES under the contract in the amount of $16.47 million, representing the net present value of Gulf South's damages.

The stipulation resolves all outstanding issues relating to the claim and the contract.

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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