Excellent brief...imo | CPN Message Board Posts

Calpine Corporation

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Msg  11533 of 23883  at  12/1/2007 1:55:42 AM  by


 In response to msg 11525 by  
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Re: Excellent brief...imo

"In most liquidation scenarios, the going-concern value of a debtor substantially exceeds
the liquidation value, because the company has good will and other intangible assets, including
management talent that adds substantial incremental value integral to the successful operation of
the business. The reality of these chapter 11 cases is completely different the value of Calpine
is only in its assets. The senior management of Calpine, or what remains of it, has little to no
energy industry experience. The chief executive officer (CEO), Robert May, has no previous
energy experience; the chief financial officer (CFO); Lisa Donahue, is an interim CFO from
Alix Partners; the head of Calpines commercial operations; Tom May, recently resigned; and
Calpines head of power operations, Robert Fishman, left the Company to pursue more appealing
business opportunities. Finally, as evidenced by the Debtors M&D Equity Plan term sheet, the
positions of chief operating officer and chief administrative officer are not filled. Accordingly,
there is little accretive value to be gained from management, thereby limiting the value of the
Debtors estates strictly to the value of their assets."

This paragraph could usefully be read in court followed by 2 questions:
1- How then could you justify the big bonuses for the management if they do not bring any value to the company?
2- What credibility can we give to their evaluation again if they have zero competency for this kind of operations?
And finally a third question:
If the value of the company is just the value of the assets, what is the value assigned to each asset and in particular what is the value assigned to the geysers?

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Msg # Subject Author Recs Date Posted
11536 Re: Excellent brief...imo billyboy7 1 12/1/2007 3:18:25 AM

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