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WILMINGTON, Del. (AP) - A Delaware judge on Friday gave struggling power merchant Calpine Corp. until Jan. 22 to restore $313.6 million in improperly spent proceeds from the sale of its natural gas supplies back into an escrow account, a decision that could bring the company one step closer to bankruptcy.
Court of Chancery Judge Leo Strine rejected Calpine's offer to restore $199 million into the account within 90 days and ordered the company to come up with all of the $313 million, plus interest, but he also refused a request by trustees for the bondholders to restore the money sooner.
"There's no perfect equitable solution to this," said Strine, adding that he was sensitive to the concerns of all Calpine stakeholders, and aware that the company this week replaced its longtime chief executive officer and chief financial officer.
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