Hedge fund Harbinger Capital Partners and General Electric Co. have offered to purchase a controlling stake in Calpine Corp. when the power company emerges from bankruptcy, a person familiar with the situation said.
The plan, by Harbinger, GE Energy Financial Services and an unnamed private-equity firm, would offer an infusion of equity while keeping the company's debt levels about the same, this person said. The person declined to give details of the proposal, but said Calpine (other-otc: CPNLQ.PK - news - people ) has received more than one bid.
Calpine is likely to reject this proposal and others like it in favor of its own plan, filed with the U.S. Bankruptcy Court in Manhattan in June, said the person, who asked not to be named.
