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>>~1 new share warrant per old share.<<
Actaully it is one warrant for 10 old shares.
CPN-WI? You bought this? No wonder my questions were puzzling. I could not figure how a stock that wasn't out of bankruptcy was trading.
Sorry.
http://finance.yahoo.com/q?s=CPN-WI
I bought the when issued shares. I have a full position now as my when issued shares will be converted to regular.
Yes, they could tank.
FEMO was in BK since 2001. Carl Icahn owns a big chunk. The shares are still on the pink sheets. Institutions tpically don't buy pink sheet stocks. CPN will be listed on the NYSE tomorrow (I Think)
You PLAN to have a full position of the new shares? Is that what you are saying?
Federal Mogul tanked when issued.
No CPNLQ - Full position of the newco under the when issued shares.
Did you hold any CPNLQ?
I presume that CPN is not issued yet?
http://www.otcbb.com/asp/dailylist_search.asp?SearchSymbolForm=TRUE&OTCBB=ALL&searchby=name&searchfor=calpine&searchwith=Starting
See last one on the list
http://www.otcbb.com/asp/dailylist_search.asp?DirectSymbol=CPNZV&OTCBB=ALL
Old Calpine shares will be canceled, and stockholders will get warrants to buy new shares at an exercise price of $23.88 a share. The warrants will expire on Aug. 25, 2008.
~1 new share warrant per old share.
Anyone know what happens to holders of CPNLQ stock? It isn't trading today? TIA
Joe Stocks - Tks, I guess I will hold and hope CPN goes up, up and away.
JD
Hi JD, You best option here is to sit on the stock and take the warrnats when they are issued. You could sell your shares here but a 1000 shares will only give you 150.00 at 15 cents a share.
A warrant is different than an option as the shares are issued directly from the company's treasury stock, whereas an option gives you rights to someone elses shares that have already been issued. Usually warrants carry 5 year expirations as well - longer than options.
That said, these warrants expire on August 25th of this year. The exercise price is $23.88. For every 10 shares now owned you will receive one warrant. 1000 shares will give you 100 warrants are the rights to buy 100 shares at $23.88. Of course you want CPN to be above $23.88 by August 25th. Just keep an eye on them.
I have been a long time player of CPN. In fact, I ran this board for about a year until I turned it over to someone else. I have to say that CPN has been good to me as a trader, but the long term holders got screwed. Below is the company press release. See the end of the report for current shareholder info. As a side note, I have been buying the new shares for the last week or so with the 'when issued' shares. I think the new CPN could be an attractive investment at the ground floor of it's exit from BK.
If you want to discuss the new shares (or any other stocks) I have a board at
http://investorshub.advfn.com/boards/board.asp?board_id=4325
Calpine Emerges From Chapter 11
Emerges as a Stronger, More Competitive Power Company Poised for Growth
SAN JOSE, Calif. and HOUSTON, Jan. 31 /PRNewswire-FirstCall/ -- Calpine Corporation (Pink Sheets: CPNLQ; NYSE: CPN) announced today that it has successfully emerged from Chapter 11 bankruptcy protection. 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.
Calpine's stock is expected to begin "regular way" trading on the New York Stock Exchange on or about February 5, 2008 under the ticker symbol CPN.
"This is a wonderful day for all of us at the new Calpine," said Robert P. May, Calpine's Chief Executive Officer. "We are very proud of what we have been able to accomplish over the past two years. Calpine is now a stronger, more competitive power company poised for growth in the energy industry. We are well positioned for future success, with a healthy balance sheet and a $7.3 billion exit financing facility. On behalf of the Board and management team, we would like to thank the nearly 2,200 Calpine employees for their hard work, perseverance and dedication over the past two years. We'd also like to thank our customers, business partners and the communities we serve for their support throughout this process."
Gregory L. Doody, Calpine's General Counsel, who has also served as the company's Chief Restructuring Officer, said, "Calpine's restructuring was 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. In addition, we enhanced and streamlined our core power generation business. Together, these financial and operating improvements have laid a strong foundation for the future success of Calpine, its stakeholders, customers and employees."
The Court approved Calpine's new nine-member Board of Directors, on November, 20, 2007. The Directors are:
-- William J. Patterson -- Chairman of the Board.
-- Frank Cassidy -- Member, Compensation Committee.
-- Kenneth Derr -- Chair, Compensation Committee.
-- Robert C. Hinckley -- Member, Audit Committee and Member, Nominating
and Governance Committee.
-- Robert P. May -- Chief Executive Officer
-- David Merritt -- Chair, Audit Committee.
-- W. Benjamin Moreland -- Member, Audit Committee.
-- Denise M. O'Leary -- Chair, Nominating and Governance Committee.
-- J. Stuart Ryan -- Member, Compensation Committee.
Under the Plan, Calpine intends to issue a total of 485 million shares of reorganized Calpine common stock to holders of allowed claims. The reorganized Calpine common stock will trade on the New York Stock Exchange under the ticker symbol CPN. Calpine anticipates that it will make initial distributions under the Plan to holders of allowed claims and interests on or before February 10, 2008. In addition to the 485 million shares, Calpine will reserve 15 million shares for distribution pursuant to the terms of Calpine's Management and Director Equity Incentive Programs, which will be implemented pursuant to the terms of the Plan.
In its first distribution, Calpine currently anticipates distributing on account of allowed unsecured claims approximately 423 million shares of reorganized Calpine common stock, each with an imputed value of $17.36 based upon a $8.7 billion reorganized equity value and the face value of the exit financing.
Calpine currently estimates in connection with its first distribution that: (1) general unsecured creditors will receive approximately 84.8 percent of their allowed claims for principal and pre-petition interest; (2) holders of the 7.625 percent Senior Notes Due 2006, 7.75 percent Senior Notes Due 2009, 7.875 percent Senior Notes Due 2008, 8.75 percent Senior Notes Due 2007, and 10.5 percent Senior Notes Due 2006 (the "Senior Notes") will receive approximately 100.0 percent of their allowed claims for principal and pre-petition interest; and (3) holders of the 7.75 percent Contingent Convertible Notes Due 2015 (the "Subordinated Notes") will receive approximately 42.0 percent of their allowed claims for principal and pre-petition interest.
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. As claims are resolved, Calpine will make further distributions of reorganized Calpine common stock on a periodic basis in accordance with the terms of the Plan. Based upon the $18.95 billion total enterprise value of Calpine set forth in the Plan and Calpine's current litigation-risk assessment of allowed claims, Calpine currently estimates that: (1) general unsecured creditors will ultimately recover approximately 99.9 percent of their allowed claims for principal and pre-petition interest; (2) holders of the Senior Notes will ultimately recover approximately 100.0 percent of their allowed claims for principal and pre-petition interest; and (3) holders of the Subordinated Notes will ultimately recover approximately 75.0 percent of their allowed claims for principal and pre-petition interest.
In accordance with the Plan, post-petition interest on the Senior Notes and certain related claims will be held in escrow pending the resolution of the Intercreditor Subordination Dispute between the holders of the Senior Notes and holders of the Subordinated Notes described in detail in the Plan. The recoveries for the holders of the Senior Notes and holders of the Subordinated Notes under the Plan depend, in part, on the resolution of the Intercreditor Subordination Dispute. Calpine's estimates regarding the ultimate recoveries under the Plan for the holders of the Subordinated Notes set forth above assume that the holders of the Senior Notes will prevail in the Intercreditor Subordination Dispute, although Calpine currently has not yet taken any position with respect to such dispute.
As part of the Plan, Calpine's old common stock will be cancelled and holders of the old common stock will receive warrants to purchase new Calpine common stock. These warrants will be for an aggregate of approximately 48.5 million shares of new Calpine common stock and will have an exercise price of $23.88 per share. Cashless exercises will not be permitted. The warrants will expire on August 25, 2008. The warrants will be distributed to the holders of the old Calpine common stock pro rata based on the number of shares of old Calpine common stock held at the time of cancellation. Fractional warrants will not be issued.
cato__ - Tks for the response, I agree it does sound like a royal screwing for the existing shareholders. My father was in long ago at like $8 something, so I guess the best bet is to take the warrants and hope the price goes up enough to exercise them.
I'm no expert either. But I think were down to two choices: 1) sell the shares while you still can (which maybe now you can't) or 2) accept the warrants and either sell them (but they wont be listed so, talk to your broker about that possibility) or hope they become in the money (the share price goes above the exercise price (not very likely) and exercise them. Problem with that is, you'll need close to $30,000 to do that at the 28.50 price I've heard mentioned.
Starting to pick up here, lotsa action!-e-
Can someone please explain something to me? I dont know a lot about this, but my father owns 1100 shares of calpine and is wanting to know what his options are with this stock. I dont really understand the deal with the warrants either. Please help, any info will be much appreciated.
Tks,
JD
OTCBB and Other-OTC System Changes - 02/01/2008
OTCBB Daily List
Other-OTC / Portal / PPS Daily List
OTCBB, Other-OTC and Portal Daily List
SECURITY DELETIONS
Updated Symbol Company Name Effective Date/Comments
08:32 CPNLQ Calpine Corporation Common Stock 2/4/2008 Bankruptcy declared effective 1/31/2008 **
Picked up by Pravda...
http://english.pravda.ru/news/business/01-02-2008/103796-calpine_bankruptcy-0
mary News Charts Options Fundamentals Insiders Earnings Financials SEC Filings
UPDATE: Calpine Emerges From Bankruptcy
28 minutes ago - Dow Jones News
By John Letzing
SAN FRANCISCO (Dow Jones) - Power generator Calpine Corp. said Thursday it has emerged from Chapter 11 bankruptcy protection, and closed a $7.3 billion "exit financing facility."
San Jose, Calif.-based Calpine (CPNLQ) said its stock, currently traded on the Pink Sheets, should begin trading on the New York Stock Exchange Feb. 5 under the ticker "CPN."
Calpine, whose gas-fired power plants serve customers in 18 states, filed for bankruptcy in December 2005 in the aftermath of the Enron Corp. scandal and the collapse of the merchant power industry.
Calpine said in a prepared statement that it has reduced roughly $7.2 billion in debt in the past two years "while generating a significant recovery for our creditors as a whole."
According to a reorganization plan, holders of Calpine's old common stock will be able to receive warrants to purchase roughly 48.5 million shares of new stock, at an exercise price of $23.88 a share, the company said.
Calpine said its reorganization plan was confirmed by U.S. Bankruptcy Court for the Southern District of New York on Dec. 19.
> Dow Jones Newswires
02-01-08 0454ET
Copyright (c) 2008 Dow Jones & Company, Inc.
DRCO as an MM has CPNLQ as a client...and they don't back losers
http://www.otcbb.com/asp/tradeact_mv.asp?SearchBy=mp&Issue=DRCO&SortBy=volume&Month=8-1-2007&IMAGE1.x=15&IMAGE1.y=7
and also is in their coverage group as a client
http://www.dahlmanrose.com/Content/Coverage_Group.asp
Calpine Emerges From Chapter 11Last update: 1/31/2008 7:31:00 PMEmerges as a Stronger, More Competitive Power Company Poised for Growth SAN JOSE, Calif. and HOUSTON, Jan 31, 2008 /PRNewswire-FirstCall via COMTEX/ -- Calpine Corporation (Pink Sheets: CPNLQ; NYSE: CPN) announced today that it has successfully emerged from Chapter 11 bankruptcy protection. 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. Calpine's stock is expected to begin "regular way" trading on the New York Stock Exchange on or about February 5, 2008 under the ticker symbol CPN. "This is a wonderful day for all of us at the new Calpine," said Robert P. May, Calpine's Chief Executive Officer. "We are very proud of what we have been able to accomplish over the past two years. Calpine is now a stronger, more competitive power company poised for growth in the energy industry. We are well positioned for future success, with a healthy balance sheet and a $7.3 billion exit financing facility. On behalf of the Board and management team, we would like to thank the nearly 2,200 Calpine employees for their hard work, perseverance and dedication over the past two years. We'd also like to thank our customers, business partners and the communities we serve for their support throughout this process." Gregory L. Doody, Calpine's General Counsel, who has also served as the company's Chief Restructuring Officer, said, "Calpine's restructuring was 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. In addition, we enhanced and streamlined our core power generation business. Together, these financial and operating improvements have laid a strong foundation for the future success of Calpine, its stakeholders, customers and employees." The Court approved Calpine's new nine-member Board of Directors, on November, 20, 2007. The Directors are:
-- William J. Patterson -- Chairman of the Board. -- Frank Cassidy -- Member, Compensation Committee. -- Kenneth Derr -- Chair, Compensation Committee. -- Robert C. Hinckley -- Member, Audit Committee and Member, Nominating and Governance Committee. -- Robert P. May -- Chief Executive Officer -- David Merritt -- Chair, Audit Committee. -- W. Benjamin Moreland -- Member, Audit Committee. -- Denise M. O'Leary -- Chair, Nominating and Governance Committee. -- J. Stuart Ryan -- Member, Compensation Committee.Under the Plan, Calpine intends to issue a total of 485 million shares of reorganized Calpine common stock to holders of allowed claims. The reorganized Calpine common stock will trade on the New York Stock Exchange under the ticker symbol CPN. Calpine anticipates that it will make initial distributions under the Plan to holders of allowed claims and interests on or before February 10, 2008. In addition to the 485 million shares, Calpine will reserve 15 million shares for distribution pursuant to the terms of Calpine's Management and Director Equity Incentive Programs, which will be implemented pursuant to the terms of the Plan. In its first distribution, Calpine currently anticipates distributing on account of allowed unsecured claims approximately 423 million shares of reorganized Calpine common stock, each with an imputed value of $17.36 based upon a $8.7 billion reorganized equity value and the face value of the exit financing. Calpine currently estimates in connection with its first distribution that: (1) general unsecured creditors will receive approximately 84.8 percent of their allowed claims for principal and pre-petition interest; (2) holders of the 7.625 percent Senior Notes Due 2006, 7.75 percent Senior Notes Due 2009, 7.875 percent Senior Notes Due 2008, 8.75 percent Senior Notes Due 2007, and 10.5 percent Senior Notes Due 2006 (the "Senior Notes") will receive approximately 100.0 percent of their allowed claims for principal and pre-petition interest; and (3) holders of the 7.75 percent Contingent Convertible Notes Due 2015 (the "Subordinated Notes") will receive approximately 42.0 percent of their allowed claims for principal and pre-petition interest. 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. As claims are resolved, Calpine will make further distributions of reorganized Calpine common stock on a periodic basis in accordance with the terms of the Plan. Based upon the $18.95 billion total enterprise value of Calpine set forth in the Plan and Calpine's current litigation-risk assessment of allowed claims, Calpine currently estimates that: (1) general unsecured creditors will ultimately recover approximately 99.9 percent of their allowed claims for principal and pre-petition interest; (2) holders of the Senior Notes will ultimately recover approximately 100.0 percent of their allowed claims for principal and pre-petition interest; and (3) holders of the Subordinated Notes will ultimately recover approximately 75.0 percent of their allowed claims for principal and pre-petition interest. In accordance with the Plan, post-petition interest on the Senior Notes and certain related claims will be held in escrow pending the resolution of the Intercreditor Subordination Dispute between the holders of the Senior Notes and holders of the Subordinated Notes described in detail in the Plan. The recoveries for the holders of the Senior Notes and holders of the Subordinated Notes under the Plan depend, in part, on the resolution of the Intercreditor Subordination Dispute. Calpine's estimates regarding the ultimate recoveries under the Plan for the holders of the Subordinated Notes set forth above assume that the holders of the Senior Notes will prevail in the Intercreditor Subordination Dispute, although Calpine currently has not yet taken any position with respect to such dispute. As part of the Plan, Calpine's old common stock will be cancelled and holders of the old common stock will receive warrants to purchase new Calpine common stock. These warrants will be for an aggregate of approximately 48.5 million shares of new Calpine common stock and will have an exercise price of $23.88 per share. Cashless exercises will not be permitted. The warrants will expire on August 25, 2008. The warrants will be distributed to the holders of the old Calpine common stock pro rata based on the number of shares of old Calpine common stock held at the time of cancellation. Fractional warrants will not be issued.
I saw there is a warrant issue pending - 1 for 10 shares. That impacts the short equation, doesn't it?
Zero, and the shorter pays no commission to cover,,,
because he can't, and there is no need, and his Broker
releases his collateral, along with his profit.
Also, some shorters cover early, like half-way down.
Just to release their collateral [and half the profits],
and then short twice as many shares, with the same collateral.
And then, after another half, they do it again.
It works great for pinks, that always keep dropping,
90+% per year, with Reverse Splits, as necessary,
until BK and/or delisting. The only problem is 'suspension'
of trading. Then, the collateral is tied up, until the
shorter [with help from his Broker] can locate shares to
buy, privately, to cover the short position.
Otherwise, he just waits. And, covers after trading resumes.
What happens if an investor maintains a short position in a stock of a company that is delisted and declarers bankruptcy?
What does the short seller owe (if anything) to close the position (out of the non-existing stock)?
-------------
The short seller owes nada, nil, zip, or whatever you want to call it.
When you short sell you borrow the shares, sell them on the market, and then collect the proceeds as cash. When you want to get out of the position, you would have to buy back the same number of shares to repay the person (or brokerage) from whom you borrowed them. If you buy back the shares at a price lower than the price at which you originally sold them, you collect the difference, so short selling is a way to profit from a falling stock. But if the company is delisted and bankrupt, you don't have to pay back anyone because the shares are worthless.
Note: This is the best possible scenario for a short seller.
http://www.investopedia.com/ask/answers/03/082803.asp
#msg-24766598
Sorry for the Double Post - Wacky Computer.
OT: dumb indian, what about another Stock? ...
SCRA ... that is going through B/K too?
Your Input?
TIA.
OT: dumb indian, what about another Stock? ...
SCRA ... that is going through B/K too?
Your Input?
TIA.
Just north of San Francisco, The Geysers is the largest dry steam field in the world, and began producing electricity as far back as 1960. That area has enough installed capacity to power nearly one million homes. Nearly all of the geothermal plants there are owned by Calpine Corporation (OTC: CPNLQ).
this play looks promising long term, chart trending up with volume. next 2 quarters will be tricky however and clean exit from bankruptcy.
might jump in soon.
glta
Will this company save the commons as a result of plan of reorganisation? TIA
'If what is said were true, the share price would not be dropping'
Well I dont know...they didnt give a lot of info, said that the valuation was less, but also said that 10% of new shares would go to current shareholders in the form of warrants (didnt give the price). I think as someone else said the shares would stop trading once a set in stone deal was made.
Actually you can check out the Yahoo board for CPN as well...the long term posters apparently have some of the same questions about the warrant price....
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_C/forumview?bn=4274
More than one, would want to pay. I hung on in same situations, like many others. Lost 100 percent every time. What is said usually is not what is usually done. If what is said were true, the share price would not be dropping, and all of a sudden, a shortage of shares for sale, would be apparent. You know to take advantage of the good warrant deal. See where the share price is below the $.41 benchmark. Definitely a good reason for that. What happened to me, as the exit date for getting out of BK got nearer, could not sell the stock at any price. If CPNLQ is different, it would be a total shock. ALL, use your own judgement, could also be a moneymaker. Good luck in your decisions. HAPPY HOLIDAYS. Indian
Thanks for the info.
The tentative deal would give Calpine's existing shareholders warrants to buy up to 10 percent of the reorganized company's shares,
Guess the question is what will the warrant price be?
Richard Cieri said the settlement would set the company's post-bankruptcy value at $18.95 billion. That's down $400 million from the company's previous estimate of $19.35 billion.
The tentative deal would give Calpine's existing shareholders warrants to buy up to 10 percent of the reorganized company's shares, in spite of the drop in the company's anticipated post-bankruptcy value.
The shareholders, who've insisted the company will be worth about $24.4 billion, wouldn't have recovered anything under the Calpine's reorganization plan if the bankruptcy court had agreed with the company's valuation.
Actually there was a BK hearing today...forgot all about it. Obviously news was not good for the retail investors.
YES, there is news you can't find. When the ticker changes to CPN, you are guarenteed to lose every penny you have invested in CPNLQ. Don't believe it, keep all the shares you can. Indian
I'm asking myself the same question....esp after it flew to .75. What a stock....
Now What?????????
December 5, 2007 - 5:27 PM EST
CPNLQ 0.67
Calpine Intends to Re-List on New York Stock Exchange Upon Emergence From Bankruptcy
SAN JOSE, Calif. and HOUSTON, Dec. 5 /CNW/ -- Calpine Corporation (OTC Pink Sheets: CPNLQ) announced today that it has filed an application to list the common stock of the reorganized Calpine on the New York Stock Exchange ("NYSE") after the company's emergence from bankruptcy. Subject to the approval of its listing application and the effectiveness of its Plan of Reorganization, Calpine anticipates that the shares of the newly issued stock will begin trading on the NYSE in January 2008 under the ticker symbol CPN.
"Having the NYSE's support and confidence in the reorganized Calpine is another positive step forward in our restructuring process," said Robert P. May, Calpine's Chief Executive Officer. "We look forward to continuing to work with our constituents throughout the restructuring process to emerge as a financially stable, stand-alone company with an improved competitive position in the energy industry."
"We are pleased to welcome Calpine back to our family of listed companies," said Catherine R. Kinney, President, Co-Chief Operating Officer, NYSE Euronext. "We look forward to an outstanding partnership with the company and to providing Calpine with the superior market quality, information services and unsurpassed brand offered to issuers on the NYSE Euronext."
The Company expects to emerge from Chapter 11 prior to Jan. 31, 2008.
About Calpine
Calpine Corporation is helping meet the needs of an economy that demands more and cleaner sources of electricity. Founded in 1984, Calpine is a major U.S. power company, capable of delivering nearly 24,000 megawatts of clean, cost-effective, reliable and fuel-efficient electricity to customers and communities in 18 states in the U.S. The company owns, leases and operates low-carbon, natural gas-fired and renewable geothermal power plants. Using advanced technologies, Calpine generates electricity in a reliable and environmentally responsible manner for the customers and communities it serves. Please visit http://www.calpine.com for more information.
In addition to historical information, this Report contains forward- looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. We use words such as "believe," "intend," "expect," "anticipate," "plan," "may," "will" and similar expressions to identify forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results to differ materially from those anticipated in the forward-looking statements. Such risks and uncertainties include, but are not limited to: (i) the risks and uncertainties associated with our Chapter 11 cases and CCAA proceedings, including our ability to successfully reorganize and emerge from Chapter 11; (ii) our ability to implement our business plan; (iii) financial results that may be volatile and may not reflect historical trends; (iv) seasonal fluctuations of our results; (v) potential volatility in earnings associated with fluctuations in prices for commodities such as natural gas and power; (vi) our ability to manage liquidity needs and comply with covenants related to our existing financing obligations and anticipated exit financing; (vii) the direct or indirect effects on our business of our impaired credit including increased cash collateral requirements in connection with the use of commodity contracts; (viii) transportation of natural gas and transmission of electricity; (ix) the expiration or termination of our PPAs and the related results on revenues; (x) risks associated with the operation of power plants including unscheduled outages; (xi) factors that impact the output of our geothermal resources and generation facilities, including unusual or unexpected steam field well and pipeline maintenance and variables associated with the waste water injection projects that supply added water to the steam reservoir; (xii) risks associated with power project development and construction activities; (xiii) our ability to attract, retain and motivate key employees; (xiv) our ability to attract and retain customers and counterparties; (xv) competition; (xvi) risks associated with marketing and selling power from plants in the evolving energy markets; (xvii) present and possible future claims, litigation and enforcement actions; (xviii) effects of the application of laws or regulations, including changes in laws or regulations or the interpretation thereof; and (xix) other risks identified in this Report and our 2006 Form 10-K. You should also carefully review other reports that we file with the SEC, including without limitation our 2006 Form 10-K. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise.
Source: Canada NewsWire (December 5, 2007 - 5:27 PM EST)
News by QuoteMedia
www.quotemedia.com
LOTTO, think you are completely wrong. The real scenerio is this. If DEC. 30, is the date CALPINE comes out of BANKRUPCY. It is almost guarenteed the common shareholder will lose everything. Think the $.41 is just a carrot, to keep an interest in the stock. Have 4 companies that changed my shares to nothing, when their bankruptcie's were discharged. All had the same scenerios as this, except for the carrot. Indian
KMART, UNITED AIRLINES, KIASER ALUMINUM, AND ONEIDA SILVERWARE.
SHORT COVERING, are you kidding??????? '' NONE ''
What happens if an investor maintains a short position in a stock of a company that is delisted and declarers bankruptcy?
What does the short seller owe (if anything) to close the position (out of the non-existing stock)?
-------------
The short seller owes nada, nil, zip, or whatever you want to call it.
When you short sell you borrow the shares, sell them on the market, and then collect the proceeds as cash. When you want to get out of the position, you would have to buy back the same number of shares to repay the person (or brokerage) from whom you borrowed them. If you buy back the shares at a price lower than the price at which you originally sold them, you collect the difference, so short selling is a way to profit from a falling stock. But if the company is delisted and bankrupt, you don't have to pay back anyone because the shares are worthless.
Note: This is the best possible scenario for a short seller.
http://www.investopedia.com/ask/answers/03/082803.asp
(2) shareholders will receive no recovery on account of their common stock. Using the same midpoint total enterprise value and Calpine's 'low-claims' estimate, Calpine estimates that (1) unsecured creditors will be paid their allowed principal plus pre- and post-petition interest claims in full, and (2) shareholders will receive $0.41 !!!!on account of each share of common stock. Using the same midpoint total enterprise value and Calpine's 'high-claims' estimate, Calpine estimates that post-petition interest claims will not be paid, and therefore (1) general unsecured creditors will recover 88.0% of their allowed principal plus pre- and post-petition interest claims (which recovery is equivalent to 99.7% of allowed principal plus pre-petition interest claims), and (2) shareholders will receive no recovery on account of their common stock. Despite these estimates, no assurances can be made regarding the actual recoveries to creditors and shareholders because, among other things, the Bankruptcy Court has not finally adjudicated all of the claims asserted against Calpine and has yet to determine Reorganized Calpine's total enterprise value.
so you can buy at .15 monday imho and dump in two weeks imho
shorts will cover and bring the price above $2 because the want to pay the $.41 to the longs imho
ion is that you buy monday at .15 with blood in the streets and realize that the shares will not be cancelled. these are scare tactics of the shortsellers.
You didn't ask me, but I'll give you my opinion anyway -- Marsal was calling this a complete equity washout bankruptcy all along... from day one.
The shares were planned from the beginning to be cancelled and to let the bond holders come out in first chair... the old shareholders washed away and the new shares are coming soon...
ON the other hand, it could just be part of the negotiation in bankruptcy court proceedings.
I stick by my original assessment: #msg-8853020
...I'm not as deep into this one as I have been on other special situations, but I think the bondholders are going to win this one. May could choose BK as the strategy.
I have no position, so please don't take this as bashing, but I'm intentionally avoiding this one at this point. I hope you all can time it right. I just can't see the common surviving. Just my opinion.
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