Calpine (CPN) fell 19% Friday, prompting the company to tell Wall Street it doesn't plan a bankruptcy filing.
The San Jose, Calif., power company said it issued a midafternoon press release "to respond to market rumors" that led to "trading pressure on the company's equity and bonds."
"We feel compelled to comment today to assure the marketplace that these rumors are false," the company said. "Calpine remains in compliance with its corporate and project indentures. Further, the company assures the market that it has no plans to file for bankruptcy.
"The company continues to move forward on its 2005 financial program focused on reducing corporate debt, enhancing liquidity, and strengthening its long-term contract portfolio," Calpine said.
The news comes just days after Calpine said it would have to restate earnings to fix a $17 million error in determining payments from Calpine Energy Services.
Calpine slid 46 cents Friday to $2.