Calpine shares to begin "when issued" trading
reuters.com
NEW YORK, Jan 15 (Reuters) - Calpine Corp (CPNLQ.PK: Quote, Profile, Research) said on Tuesday its shares will begin "when issued" trading on Jan. 16 as part of the power company's move to emerge from bankruptcy by the end of the month.
"When issued" trading will help set a market price for Calpine shares.
The shares will begin trading in a regular way, with attached security, under the stock symbol CPN shortly after or possibly at Calpine's emergence from Chapter 11 bankruptcy protection, said company spokeswoman Norma Dunn.
Calpine is hoping to exit bankruptcy before the end of the month, but that timeline may be pushed back to Feb. 5, Dunn added. The company has until Feb. 7 before its current exit financing commitment expires.
Calpine secured the financing before the subprime mortgage debacle hit credit markets last summer. Given the current credit environment, it is unlikely the power company could receive terms as attractive as those in its current financing pact if it needed an extension or a replacement.
The two major issues outstanding before emergence from bankruptcy are finalizing its exit financing, which includes negotiating and setting covenants, and administrating the distribution of its shares.
Judge Burton Lifland of the U.S. Bankruptcy Court for the Southern District of New York denied a motion from a group of dissident equity holders who asked him to reconsider his decision to approve Calpine's reorganization plan, according to Dunn. (Reporting by Lisa Lee; Additional reporting by Swagata Gupta in Bangalore; editing by John Wallace) |
