Calpine to seek financing for Chapter 11 exit

Calpine Corp. said that it would seek new equity investors and that it had submitted a business plan to creditors that could form the basis of its proposed bankruptcy reorganization.

The San Jose-based energy company, which has been operating under Chapter 11 protection since December 2005, said it would soon ask U.S. Bankruptcy Judge Burton R. Lifland in New York to allow it to hire investment bank Miller Buckfire & Co. to help raise equity financing for its exit from Chapter 11, according to case papers Calpine filed Tuesday.

Calpine has until June 20 to file a reorganization plan explaining how it intends to pay creditors and to exit bankruptcy.

According to court papers, Calpine said its net loss for the 11-month period ended Nov. 30 was $800 million higher than for the same period in 2005, which the company attributed largely to $1 billion in reorganization items.

In 2005, Calpine posted a loss of $9.94 billion, or $21.44 a share, on revenue of $10.11 billion.

The company, however, said its core operating results improved over last year.

Calpine shares dropped 20 cents to $1.45.