Alberta Court Judge orders Calpine auction
Published January 23rd, 2007
A judge has quashed a proposed deal between the Calpine Power Income Fund and Calpine Canada Power Ltd., the manager of the fund and operator of some of its plants.
Alberta Court of Queen’s Bench Justice B.E.C. Romaine ordered an auction of Calpine Canada Power’s 30 per cent interest in Calpine Power LP.
Calpine Power Income Fund holds the other 70 per cent of the limited partnership, which owns the 300-megawatt Calgary Energy Centre and the 240-megawatt Island Cogeneration Facility in British Columbia.
The judge said bids will be due Thursday, a monitor’s report Friday will compare the offers, and a court hearing will be held next Tuesday to consider the auction.
The trust’s board has decided that the proposed agreement will be terminated, but may be resubmitted or modified.
Justice Romaine also ordered disclosure of the financial terms of the proposed agreement by midday Tuesday.
UBS analyst Andrew Kuske said the court decision wasn’t surprising, as “an open auction process is most likely to protect the interests of all parties involved.
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