Sun, Jan 25, 2015, 8:12 AM EST - U.S. Markets closed


% | $
Quotes you view appear here for quick access.

Southern Company Message Board

  • contracortos contracortos Jan 1, 2006 12:32 AM Flag

    OT - Calpine facing Chapter 7

    I sincerely believe Calpine will go through Chapter 7 liquidation. Once they write down the value of the plants, the lawyers burn up millions fighting about all of it, the contracts are cancelled (more claims against the estate), etc., etc. -- they're going to face Chapter 7 because the second lien debtholders seem to be that hard core in this particular case.

    It seems to have become an either/or situation. Almost certainly, the equity is going to be worth absolutely zero. What a sad, sad situation.

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Chapter 7 would kill the "success" fee. What a joke.

      "On Tuesday Calpine said it would pay Robert May $1.5 million a year, plus bonuses that could reach $3 million a year, as well as a $12 million "success fee" if the bankruptcy court confirms a reorganization plan while May is CEO or within 12 months of his leaving."

      • 1 Reply to warbucks2020
      • Concur that Calpine will fight to establish a viable reorganization plan. Challenge will be to ward off the accounting write-down of leading-edge plants and facilities. While the debt structure is far more complicated, Mirant (and the astute Bankruptcy Judge) serves as an enviable example.

        Any word yet on the establishment of a Shareholder Committee? Book value is >$6/share...with Calpine's energy business FINALLY beginning to turn the corner to one-day profitability. As I recall, former CEO/CFO emphasized that he would personally lead the shareholder's fight in bankruptcy court.

    • Interesting thought. The creditors will gamble on a sale of the assets rather than control of a reorged Calpine? Of course they do say the debt structure is beyond complex. Makes me glad to holding MIRKQ. They always had the better business case.

52.23+0.10(+0.19%)Jan 23 4:00 PMEST

Trending Tickers

Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.