Contact Information: Investor Contacts: Cleco Corporation: Ryan Gunter (318) 484-7724 Shareholder Services: Rodney Hamilton (318) 484-7593 Analyst Inquiries: Kristine Walczak (312) 780-7205 Media Contact: Michael Burns (318) 484-7663
Cleco Corp. Sells Bankruptcy Claims to JP Morgan Chase Bank, N.A.
| Source: Cleco Corp.
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.