Calpine files amended reorganization plan

San Jose, Calif.-based Calpine (Pink Sheets: CPNLQ), which filed for bankruptcy protection in late 2005, filed an amended plan of reorganization yesterday, offering creditors a better deal than the previous plan filed in June.

One of the top geothermal power producers in the U.S., Calpine controls 25,322 megawatts of generating capacity through interests in 66 natural gas-fired power plants throughout the States and 19 geothermal power plants in California.

In the revised plan filed with the United States Bankruptcy Court for the Southern District of New York, Calpine estimates it will be worth $21.7 billion, combining $20.3 billion in enterprise value and $1.4 billion in distributable cash.

"We believe Calpine's Amended Plan further underscores the progress we are making for Calpine to emerge as a financially stable, stand-alone Company with an improved competitive position in the energy industry," said Robert May, Calpine's CEO.

The new plan expects approved claims by creditors to be between $20.1 billion and $22 billion, with those creditors getting 95 percent to 100 percent of their allowed claims.

"Since filing our original plan we have been in discussions with our stakeholders and believe that our amended plan provides greater value to Calpine's estate with less execution risk to our stakeholders than other alternatives presented," said May.

Calpine said the amended plan would return $2.05 per Calpine share, up from $1.80 in its original reorganization plan.

The company also announced an upsized exit facility, lining up $8 billion in loans from Goldman Sachs, Credit Suisse, Deutsche Bank, and Morgan Stanley, up $3 billion from its previous facility.

Calpine hopes to exit Chapter 11 by the end of the year. A hearing to consider the company's disclosure statement is set for Sept. 11.

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