Calpine settles for $2.13 million
By Eric Fleischauer
email@example.com · 340-2435
A settlement with bankrupt Calpine Corp. yielded the county $2.13 million out of a $2.4 million claim.
In January the county hired bankruptcy lawyers to appear in a New York bankruptcy court after Calpine claimed it owed only $1.6 million.
“We were really pleased with the result,” said Revenue Commissioner Amanda Scott.
Calpine has two plants in Morgan County, both outside city limits.
The settlement was distributed June 20 as follows:
Morgan County General Fund: $410,400.
Morgan County Road and Bridge: $205,200.
Morgan County Volunteer Fire Department: $171,000.
Morgan County School System: $775,890.
Decatur City Schools: $146,349.
City of Decatur General Fund: $52,461.
Calpine is to seek court approval for a bankruptcy reorganization plan at a Dec. 18 hearing.
The U.S. trustee in Calpine Corp.’s bankruptcy case last week objected to the company’s request for about $51 million in interim legal fees and expenses, citing losses and a lack of progress on the California-based power company’s reorganization plan.
About $200 million has been paid to lawyers and other professionals since Calpine filed for bankruptcy protection in December 2005.
Calpine, which filed the largest bankruptcy of 2005, is requesting approval of a plan that values its reorganized business at about $20.3 billion.
Last month, Calpine signed a five-year agreement with the Tennessee Valley Authority to sell the full output of the company’s Decatur Energy Center.
Under terms of the agreement, TVA supplies natural gas to fuel the plant and Calpine delivers up to 770 megawatts of electricity to TVA.
Calpine has about 45 employees in the county.
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