Tuesday, 28 May 2024

Calpine emerges from bankruptcy, starts trade on stock exchange

With the ringing of Wall Street's opening bell Friday morning, Calpine marked its official return to regular trading on the New York Stock Exchange after its Jan. 31 emergence from bankruptcy.

"Calpine is proud to once again be traded on the New York Stock Exchange," said Robert P. May, Calpine's chief executive officer, in a written statement.

"We have streamlined our operations and strengthened our balance sheet, and we are returning to the New York Stock Exchange as a stronger and more competitive power company with one of the cleanest generating fleets in the United States,” May said. “We are confident that the new Calpine is well positioned in the market and poised for success as a corporate leader in the nation's energy industry."

Calpine declared Chapter 11 bankruptcy in December 2005, as Lake County News has reported.

Company executives were on hand at the New York Stock Exchange Friday morning for the ringing of the market's opening bell.

The company's stock was relisted under the symbol “CPN” after emerging from Chapter 11 bankruptcy just over a week earlier.

The new stock opened at $16.50 per share, closing at $16.38. The older stock is now inactive, valued at 15 cents per share.

Calpine is one of the largest power generation companies in the United States, with nearly 24,000 megawatts of installed generating capacity and approximately 2,200 employees.

The company, founded in 1984, owns 19 of 21 geothermal units in the 40-square-mile Geysers steamfield network, which is the world's largest geothermal facility. The Geysers plants generate 725 kilowatts of power, enough to supply 725,000 households, and employ 350 workers.

On Jan. 31, the company officially concluded its Chapter 11 reorganization after meeting all statutory requirements of the company's Sixth Amended Joint Plan of Reorganization, including successfully closing its $7.3 billion exit financing facility that includes a one-year, $300 million bridge facility that is expected to be paid by the end of the first quarter.

Calpine's Plan was confirmed by the United States Bankruptcy Court for the Southern District of New York in an order entered on December 19, 2007, as Lake County News has reported.

Gregory L. Doody, Calpine's General Counsel, who has also served as the company's chief restructuring officer, called Calpine's restructuring “truly remarkable.”

“In just over two years Calpine dramatically improved its capital structure, reducing approximately $7.2 billion in debt while generating a significant recovery for our creditors as a whole,” said Doody in a written statement.

The company also enhanced and streamlined its core power generation business, Doody said.

Calpine plans to issue a total of 485 million shares of reorganized Calpine common stock to holders of allowed claims. Initial distributions are expected to begin this month.

In addition to the 485 million shares, Calpine will reserve 15 million shares for its management and director equity incentive programs, which will be implemented pursuant to the terms of the reorganization plan.

In connection with its first distribution, Calpine also intends to set aside 62 million shares of reorganized Calpine common stock on account of disputed unsecured claims, the company reported. As claims are resolved, Calpine will make further distributions of reorganized Calpine common stock on a periodic basis.

Old common stock will be canceled, the company reported, and holders of the old common stock will receive warrants to purchase new Calpine common stock with an exercise price of $23.88 per share.

The warrants to purchase the new stock will expire on Aug. 25.

E-mail Elizabeth Larson at This email address is being protected from spambots. You need JavaScript enabled to view it..


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