Big power generator Calpine Corp. said it believes it will have sufficient resources to pay all secured creditors and all or most unsecured claims when it emerges from its chapter 11 case at the end of the year, the Wall Street Journal reported today. In its reorganization plan filed with the U.S. Bankruptcy Court for the Southern District of New York yesterday, Calpine said it expects the company’s reorganization value, after dismissing certain claims, to be about $21.7 billion. That would be sufficient to pay all creditors and give common shareholders stock valued at $1.80 a share. If paid claims are lower, the stock value could rise as high as $3.50 a share.The company has eliminated about a third of its creditor claims in the bankruptcy proceeding and has cut staff by a third. It had roughly $18 billion in debt at the time of its bankruptcy filing in December 2005, and is expected to emerge from court proceedings with about $11 billion in debt.
See Also: Bankruptcy Lawyers New York