Calpine gets court OK of bid procedures for $124 million sale of unfinished Fremont power plant

By Reshmi Basu

New York, Dec. 19 - Calpine Corp. received court approval Wednesday of the bidding procedures for the proposed $124 million sale of its partially completed power plant in Fremont, Ohio.

American Municipal Power - Ohio, Inc. is the stalking horse bidder.

As previously reported, the power plant is only 70% complete and would require up to $150 million in additional capital expenditures to finish.

American Municipal Power will pay a $6.2 million deposit upon Calpine's approval of the purchase notice and another $6.2 million deposit no later than one business day before the auction.

If American Municipal Power is not the high bidder, Calpine will pay it a $3.1 million break-up fee.

The initial overbid must be for at least $4.1 million more than the stalking horse bid, and subsequent bids must be made in increments of at least $500,000.

The sale hearing will be held on Jan. 30.

Calpine, a San Jose, Calif., power company, filed for bankruptcy on Dec. 20, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-60200.

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