Calpine to sell fifth of stations

Calpine applied for bankruptcy protection in December

US power company Calpine says it plans to sell about one-fifth of its power plants as it attempts to turn around its fortunes.

The firm, which applied for bankruptcy protection in December, also intends to close three offices and cut 775 jobs.

Calpine did not identify the facilities earmarked for sale, but said it now wished to focus on its profitable geothermal and gas-fired operations.

The firm, which is centred on Texas and California, has debts of $22bn (£13bn).

More sales?

Analysts said the announced sell-off of approximately 20 facilities might not be enough for Calpine.

""I'd speculate that after this series of asset sales is completed that they may yet sell all of their geothermal assets as well," said debt analyst Jon Cartwright.

"They need the money."

Under US Chapter 11 bankruptcy protection, a firm is given breathing space from its creditors and time to turn around its finances.