Calpine Ad Hoc Committee

Equity holders overwhelming rejected the plan of reorganization (POR) Calpine management

presented to both creditors and shareholders in a referendum that concluded November 27, 2007 with tabulated results reported just days ago. In addition, 6 of the 11 groups of interest casting a ballot also rejected the plan.

Shareholders of recovering Calpine, now set to emerge from bankruptcy, are in an uproar over what they view, as an apparent theft of their equity by banking and hedge fund interests.

Stockholders remain confident that the court will take a fair approach, as was done in the Mirant bankruptcy case and grant the shareholders between $4 and $10 for their shares.

A group called the Calpine Ad Hoc Committee has been speaking out against what they view as a "rape of Main Street," here the average investor is gamed by large investment institutions whose access to markets and large amounts of capital puts the average investor at a distinct disadvantage.

"Because of the facilities the internet provides," says Elias Felluss, a spokesman for the group, "we have been able to pool our resources and unite in an effort to make the public aware of the injustices served to investors by corporations whose only interests are their own."

"I find it especially galling that we get bludgeoned with our own money, where the company has the ability to hire unlimited attorneys, squander what resources we have, pay themselves very handsomely while they are 'shafting us with our own stick', says one shareholder."

As Calpine enters the final stages of it's recovery to solvency, shareholders are learning they can expect to receive less for their share in the company. Emotions run high within the ad hoc shareholder group as the company's management continues to marginalize the equity in favor of creditor recoveries. At one time Calpine management reported a possible share recovery of over $3.00. After ballots were cast, Calpine revised their last estimate to .41 cents.


"Makes you wonder who these guys are working for? ...the banks or the lenders?," says Calpine shareholder Erick Frick of Zurich, Switzerland.

It would seem, the truth is they are working for themselves. Calpine's management has been enriched by awarding huge incentive awards to insiders as they short change investors.

" I don't think investors want what isn't theirs," reminds shareholder Merle Root of Colorado, "but we do expect
a fair shake. Judge Lifland and the Official Shareholder Committee is our only chance of getting it.


Ad Hoc spokesman said, "this company and the people behind this fraud are masters of deception".

"The press coverage has been appalling, says one shareholder, "seems they are giving very little chance for much recovery to shareholders, but we as a group believe Judge Lifland is a fair man and want to do the right thing when he determines the company's value. He has gone to
great lengths to have the parties in interest come to an agreement, and if they don't he will create one for them."

Bankers like Goldman Sachs stand to reap rich rewards as does hedge fund, Harbinger LLC, who intends to gain a controlling interest in the emerging power company, so their FERC filing reports.