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Simpson Thacher is representing Deutsche Bank and Credit Suisse as joint lead arrangers and joint agents for a $2 billion debtor in possession financing facility for energy merchant, Calpine Corporation. Calpine (and approximately 260 of its 400+ subsidiaries) filed for Chapter 11 Bankruptcy in the United States Bankruptcy Court for the Southern District of New York on December 20, 2005 listing approximately $26.5 billion in assets and more than $22.5 billion in debt, making it the eighth largest bankruptcy in US history. Calpine operates over 90 power stations across the United States including the largest geothermal power complex in the United States. The proposed $2 billion DIP Facility is one of the largest ever DIP financings. The facility was negotiated and documented in just over a week and is secured by liens on the assets of Calpine and all its debtor subsidiaries.

Simpson Thacher attorneys working on the transaction include: Peter Pantaleo, Soogy Lee, David Mack, Erin Casey (Bankruptcy), Maina Tilton, Michael Josenhans (Credit), Ken Wyman, Mark Tibberts, Amy Beller (Projects).