Calpine asks for OK of agreement with J Aron to resolve contract dispute

By Reshmi Basu

New York, Nov. 5 - Calpine Corp. asked for court approval of a stipulation agreement with J. Aron & Co., which would resolve a dispute over the termination of contracts, according to a Monday filing with the U.S. Bankruptcy Court for the Southern District of New York.

In late 2005, J. Aron, a commodity subsidiary of Goldman Sachs & Co., ended its contracts with Calpine subsidiary Calpine Energy Services LP (CES). The firm, however, said CES owed it money under those contracts.

J. Aron filed a secured claim of $14.5 million plus interest and other expenses against CES.

After arms-length negotiations, the parties reached a settlement in which J. Aron will pay $529,154 to CES. And in return, J. Aron shall keep $11.99 million of the collateral in its possession posted by CES under the contracts.

A hearing is scheduled for Nov. 27.

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.