SOURCE: Cleco Corp.

May 22, 2007 16:30 ET

Cleco Corp. Sells Bankruptcy Claims to JP Morgan Chase Bank, N.A.

PINEVILLE, LA -- (MARKET WIRE) -- May 22, 2007 -- Cleco Corp. (NYSE: CNL) announced today it has sold to JP Morgan Chase Bank, N.A., $85 million in claims Cleco received as part of its bankruptcy settlement with Calpine Corp.

Cleco expects to receive $78.2 million pre-tax from the sale of the allowed unsecured claims against Calpine Energy Services, L.P., (CES) and Calpine. The claims were in connection with two long-term tolling agreements CES held for the output of the 1,160-megawatt Acadia power plant and Calpine's guaranty of those agreements.

The Acadia plant, located near Eunice, is owned by Acadia Power Partners LLC, an entity owned equally by Cleco's Acadia Power Holdings LLC (APH) and Calpine Acadia Holdings LLC (CAH).

APH's claims against Calpine and CES were approved at a May 9 bankruptcy court hearing on an overall settlement agreement between APH and Calpine and its subsidiaries.

"We believe we received good value for our unsecured claims," Cleco President and CEO Michael Madison said. "The proceeds strengthen our liquidity."

The next step in fulfilling the terms of the settlement is a bankruptcy auction of Calpine's 50 percent ownership interest in Acadia. The bankruptcy auction is expected to be completed by July. APH has submitted a stalking horse bid for Calpine's interest in the plant.

Upon closing of the sale of Calpine's interest in Acadia, a Cleco subsidiary will assume operations and project management functions at the plant.

Cleco Corp. is a regional energy services company headquartered in Pineville, La. It operates a regulated electric utility company that serves 268,000 customers across Louisiana. Cleco also operates a wholesale energy business that has approximately 1,350 megawatts of generating capacity. For more information about Cleco, visit www.cleco.com.

Please note: This news release contains forward-looking statements about future results and circumstances with respect to which there are many risks and uncertainties, including the resolution of claims arising from the Calpine bankruptcy, and the other risks and uncertainties more fully described in Cleco's latest Annual Report on Form 10-K. Actual results may differ materially from those indicated in such forward-looking statements.

Contact Information


  • Investor Contacts:
    Cleco Corporation:
    Ryan Gunter
    (318) 484-7724

    Shareholder Services:
    Rodney Hamilton
    (318) 484-7593

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    (312) 780-7205

    Media Contact:
    Michael Burns
    (318) 484-7663