Calpine stock trade restrictions for substantial shareholders approved

By Caroline Salls

Pittsburgh, Jan. 27 - Calpine Corp. obtained approval from the U.S. Bankruptcy Court for the Southern District of New York for procedures that require all substantial shareholders to provide advance notice of their intent to buy or sell Calpine common stock, according to an 8-K filing with the Securities and Exchange Commission.

According to the filing, a substantial shareholder is the owner or buyer of at least 25.6 million shares of Calpine common stock.

Calpine said the notice procedures will help it to identify and restrict potential common stock trades that could negatively impact its accrued net operating losses and other tax attributes.

The company has 30 calendar days after notification of a transfer to file any objections with the bankruptcy court. If Calpine objects, the transfer would not be effective unless approved by a final court order.

In addition, a substantial shareholder must file notification of their status within 30 days of the trade restriction order or 10 days after becoming a substantial shareholder.

Calpine, a San Jose, Calif., power company, filed for bankruptcy on Dec. 20. Its Chapter 11 case number is 05-60200.

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