US CREDIT - Calpine swap costs leap on legal woes


By Karen Brettell NEW YORK, Oct 26 (Reuters) - The cost of insuring Calpine Corp. debt against default has leaped in past weeks on concerns legal battles between the company and groups of debt holders may put more distress on the ailing power producer. The Wall Street Journal reported on Wednesday that hedge fund Whitebox Advisors sent a notice to the company this week claiming that Calpine has defaulted on its 6 percent convertible notes due 2014. The claim follows a similar one earlier ...

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