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"Calpine is proud to once again be traded on the New York Stock Exchange," said Robert P. May, Calpine's chief executive officer, in a written statement.
"We have streamlined our operations and strengthened our balance sheet, and we are returning to the New York Stock Exchange as a stronger and more competitive power company with one of the cleanest generating fleets in the United States,” May said. “We are confident that the new Calpine is well positioned in the market and poised for success as a corporate leader in the nation's energy industry."
Calpine declared Chapter 11 bankruptcy in December 2005, as Lake County News has reported.
Company executives were on hand at the New York Stock Exchange Friday morning for the ringing of the market's opening bell.
The company's stock was relisted under the symbol “CPN” after emerging from Chapter 11 bankruptcy just over a week earlier.
The new stock opened at $16.50 per share, closing at $16.38. The older stock is now inactive, valued at 15 cents per share.
Calpine is one of the largest power generation companies in the United States, with nearly 24,000 megawatts of installed generating capacity and approximately 2,200 employees.
The company, founded in 1984, owns 19 of 21 geothermal units in the 40-square-mile Geysers steamfield network, which is the world's largest geothermal facility. The Geysers plants generate 725 kilowatts of power, enough to supply 725,000 households, and employ 350 workers.
On Jan. 31, the company officially concluded its Chapter 11 reorganization after meeting all statutory requirements of the company's Sixth Amended Joint Plan of Reorganization, including successfully closing its $7.3 billion exit financing facility that includes a one-year, $300 million bridge facility that is expected to be paid by the end of the first quarter.
Calpine's Plan was confirmed by the United States Bankruptcy Court for the Southern District of New York in an order entered on December 19, 2007, as Lake County News has reported.
Gregory L. Doody, Calpine's General Counsel, who has also served as the company's chief restructuring officer, called Calpine's restructuring “truly remarkable.”
“In just over two years Calpine dramatically improved its capital structure, reducing approximately $7.2 billion in debt while generating a significant recovery for our creditors as a whole,” said Doody in a written statement.
The company also enhanced and streamlined its core power generation business, Doody said.
Calpine plans to issue a total of 485 million shares of reorganized Calpine common stock to holders of allowed claims. Initial distributions are expected to begin this month.
In addition to the 485 million shares, Calpine will reserve 15 million shares for its management and director equity incentive programs, which will be implemented pursuant to the terms of the reorganization plan.
In connection with its first distribution, Calpine also intends to set aside 62 million shares of reorganized Calpine common stock on account of disputed unsecured claims, the company reported. As claims are resolved, Calpine will make further distributions of reorganized Calpine common stock on a periodic basis.
Old common stock will be canceled, the company reported, and holders of the old common stock will receive warrants to purchase new Calpine common stock with an exercise price of $23.88 per share.
The warrants to purchase the new stock will expire on Aug. 25.
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Berg, who will be termed out this year, offered her support to Chesbro's candidacy at a press conference held at the Humboldt County Democratic Party headquarters in Eureka on Friday morning.
The defeat earlier this week of Proposition 93 meant that Berg cannot seek reelection, which opens the door for Chesbro.
“I was supportive of Proposition 93, in large part because I was hoping Patty Berg could run for reelection,” Chesbro told Lake County News Friday afternoon.
But with no change to term limits, Chesbro said he's seeking the Assembly with Berg's “blessing and support.”
Berg said she's worked with Chesbro on many local issues and added he will do an excellent job representing the people of the North Coast. Chesbro, in turn, said he respected Berg and was grateful for her support.
A Humboldt State graduate, Chesbro founded the area’s first recycling center in 1971, was elected to the Arcata City Council in 1974 and served as Humboldt County Supervisor from 1980 to 1991.
Chesbro spent eight years in the state Senate for the Second District before he was termed out in 2006 and succeeded by Sen. Patricia Wiggins.
Since then he was appointed to two state boards: the Mental Health Oversight and Accountability Commission, created by Proposition 63; and the Integrated Waste Management Board, which regulates solid waste facilities.
The appointments have required that Chesbro spend about half his time in Sacramento, but he said he's nevertheless has more time at home with family.
Chesbro said he's calling his Assembly campaign “First District First,” to highlight his commitment to put the needs of First Assembly District residents ahead of all else.
The North Coast, Chesbro added, “is in for challenging times,” and he said he believes his experience is needed in the Assembly.
“The single biggest challenge we face right now is the continuing and growing budget deficit,” said Chesbro, who in the Senate chaired the Budget Committee.
The “urban powers” tend to gang up on rural communities, who tend to suffer most when it's time for cuts, said Chesbro.
His three areas of greatest concern – which he said are the same as those he had while in the Senate – are environmental protection, health care and education.
Chesbro said he plans to file the paperwork to run for the Assembly on Feb. 11, the first day of filing.
He'll appear on the primary ballot in June and, if he doesn't win by 51 percent or more, Chesbro will go before voters for a final November decision.
If elected, term limits will allow Chesbro to serve three, two-year Assembly terms.
Wanda Harris, chair of the Lake County Democratic Central Committee, said Chesbro has strong support among the county's Democrats.
Harris said Chesbro attended the local Democrats' holiday gathering, and she pledged to help raise funds for his campaign.
“I have no doubt that he can win,” she said Friday evening. “He's got a great record.”
Congressman Mike Thompson also offered his endorsement of Chesbro's First District candidacy, as did North Coast state Sen. Patricia Wiggins; District 3 Supervisor Denise Rushing; District 4 Supervisor Anthony Farrington; District 1 supervisorial candidate Susanne La Faver and her husband, Lyle; former Lake County Superintendent of Schools Bill Cornelison; and the South Lake County Democratic Club, among many others.
E-mail Elizabeth Larson at
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