Calpine Agreement Staves Off Chapter 11

Power producer Calpine Corp. reached an agreement keeping it from the immediate repayment of as much as $3 billion in notes, which probably would have forced it to file for bankruptcy protection.

Analysts said the agreement, made with Wilmington Trust Corp. and an unofficial steering committee of note holders, held off an immediate bankruptcy filing.

However, analysts agreed that the San Jose-based company’s long-term prospects remained unchanged.