3.2.2006: Meldung: Calpine Corp: Action to Strengthen Company and Refocus on Core Power Generation Business
SAN JOSE, Calif., Feb. 1 / Calpine Corporation announced today the initial steps of a comprehensive program designed to stabilize, improve and strengthen the company"s core power generation business and its financial health. This program will help to ensure that Calpine will emerge from its Chapter 11 restructuring as a profitable, stronger and more competitive power company.
Beginning today, Calpine is reducing activities and curtailing expenditures in certain non-core areas and business units, resulting in a staff reduction of approximately 300 positions. Combined with other cost reduction measures, including the closure of non-core offices, these actions are expected to reduce annual operating costs by approximately $50 million, enhancing the company"s financial and liquidity positions.
Robert P. May, Calpine"s Chief Executive Officer, stated, "Today"s announcement represents an important step toward Calpine"s successful restructuring and a new beginning for our company. And it starts with a renewed focus on what Calpine does best -- power generation.
"Calpine has one of the largest, cleanest and most fuel-efficient power plant fleets in the industry, and we are experienced in every aspect of power generation," added May. "It is clear, however, that our business must change to reflect today"s energy marketplace, and we must bring our operating and cost structures in line with this new reality."
Calpine"s cost reduction activities return the company"s efforts to its core North American power generation business. The areas of its business that will be immediately impacted by this program include:
* Business Development: The company is limiting its new business development activities and is focusing ongoing efforts on maximizing the value of its advanced development opportunities, including projects with long-term power contracts or in advanced contract negotiations. The company will look to sell select development projects and will continue to evaluate existing petroleum coke development in Texas. * Construction: Calpine is completing construction projects with long-term power sales commitments and is exploring the opportunity to sell this business unit. The company continues to evaluate those projects without long-term power sales agreements. * Power Services: The company is discontinuing all new business activity for Calpine Power Services and will complete its service obligations under existing contracts. * Marketing and Sales: Calpine is evaluating its future participation in power markets to determine the right balance between short-term, long-term and tolling contracts for the sale of its generation. Until then, the company is curtailing its retail power sales efforts to administering current contracts and is limiting long-term power contracting efforts for its existing generation. * Thomassen Turbine Systems (TTS): In keeping with its focus on the North American power generation sector, Calpine has determined that TTS is not a core business for Calpine and every effort will be made to sell this company to a third party.
"We have started developing a new business plan, beginning with a top-to- bottom review of our power assets, business units and markets where we are active," continued May. "Our goal is to provide near-term results, while positioning Calpine for profitable growth. This business plan will be a roadmap for Calpine"s future and will ultimately serve as the foundation for our Plan of Reorganization. We have set an aggressive timeline to strengthen our business, our capital structure and our competitive position. Throughout this process, we will continue to work closely with our creditors, the Court and other stakeholders to emerge from Chapter 11 as soon as possible."
Calpine and many of its subsidiaries filed to reorganize under Chapter 11 on December 20, 2005, in the U.S. Bankruptcy Court for the Southern District of New York. The case was assigned to the Honorable Burton R. Lifland and the lead case number is 05-60200 (BRL). More information on Calpine"s restructuring is also available on the company"s web site, http://www.calpine.com/. For access to Court documents and other general information about the Chapter 11 cases, please visit http://www.kccllc.net/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 North American power company, capable of delivering nearly 27,000 megawatts of clean, reliable electricity to customers and communities in 21 U.S. states and three Canadian provinces. The company owns, leases and operates integrated systems of fuel-efficient natural gas-fired and renewable geothermal power plants. Please visit http://www.calpine.com/ to learn more about Calpine.