Calpine to weigh reorganization plans

Calpine Corp. put its bankruptcy reorganization plan on hold Friday to weigh alternative plans presented to the independent power producer.

In a Securities and Exchange Commission filing, Calpine said “certain parties” had contacted the company about an alternative reorganization that would guarantee a payout to creditors.

The filing did not identify the parties, and Calpine spokesman Mel Scott declined to elaborate.

A person familiar with the bankruptcy proceedings, however, said Calpine had received proposals in the last few weeks from several financial and energy companies, which had offered to buy enough equity in Calpine to pay off unsecured creditors in full in cash.

A mix of financial sponsors and energy industry players could end up controlling Calpine.

Evaluation of the proposals is expected to move quickly in the next two weeks.

Hedge funds such as Appaloosa Management, the biggest shareholder of auto parts maker Dana Corp., have grown more active in taking controlling stakes in distressed companies. Dana is under Bankruptcy Court protection.

San Jose-based Calpine was working with investment bank Miller Buckfire & Co. “to gauge potential investors’ interest” in sponsoring a guaranteed distribution plan, the filing said.