Calpine Creditors Challenge Liens

"Creditors at Calpine Corp.will troop to court next week seeking the right to sue first-lien noteholders to void the security of their $646.11 million in notes.

The primarily natural gas-fired utility sought bankruptcy protection after it was hit by soaring gas prices and a barrage of debt. Calpine has generated at least $157.7 million from asset sales since early July in its restructuring efforts.

Richard Cieri, David Seligman and Edward Sassower are New York debtor counsel at Kirkland & Ellis."

This article appeared in its entirety in the November 9, 2006 edition of The Deal.