San Jose, CA, Oct. 12, 2006 — Bankrupt power producer Calpine Corp. announced that one of its non-debtor subsidiaries has completed the sale of its entire leasehold interest in the 560-megawatt Fox Energy Center, located in Kaukauna, WI, to affiliates of GE Energy Financial Services, the plant’s owner/lessor.
With the sale, Calpine intends to advance its Chapter 11 restructuring program, which attempts to focus on bringing Calpine back to its core business.
The Fox Energy Center is a natural gas-fired, combined-cycle facility that supplies electricity to Wisconsin Public Service Corp. under a ten-year power sales agreement. In consideration of the sale, Calpine will receive a cash payment from GE Energy Financial Services of approximately $16.3 million and eliminate approximately $352.3 million of obligations under a non-recourse sale/leaseback transaction.
Calpine operated, maintained and held a leasehold interest in the facility through its subsidiary, CPN Fox. Another business unit of GE, GE Energy, has hired all of Calpine’s former Fox Energy Center personnel to continue to operate and maintain the power plant. The U.S. Bankruptcy Court for the Southern District of New York and the Federal Energy Regulatory Commission have approved the sale.
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