San Jose, CA, Sept. 14, 2006 — Bankrupt power producer Calpine Corp. announced that it has received court approval to sell the 170-megawatt Dighton Power Plant, located in Dighton, MA, to BG North America LLC for approximately $90.2 million.
The company requested authorization from the bankruptcy court to sell the Dighton Power Plant as part of the court approved auction process in July 2006. The transaction, subject to certain regulatory approvals, is expected to close within the next 30 to 60 days.
“Selling our interest in the Dighton Power Plant is another step forward in our restructuring to emerge from Chapter 11 as a profitable, more competitive power company,” said Robert P. May, Calpine’s CEO.
As part of its restructuring program, when possible, Calpine seeks opportunities for its plant personnel to continue to operate and maintain those assets that are sold or transferred to new owners. For the Dighton sale, BG North America LLC will hire all the existing Calpine full-time employees of the Dighton Power Plant upon change of control.
In December of 2000, Calpine acquired the natural gas-fired, combined-cycle plant, which entered operations in July 1999. The plant currently supplies electricity to the New England power market.
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