Calpine, the debt-laden US utility, on Friday issued a correction on its third-quarter financial results, rattling already shaky investor confidence in the company ahead of litigation with bondholders next week over access to much-needed funds.

Calpine’s shares slid more than 4 per cent to $2.20 in New Trading on Friday after the correction.

The company suspended trading in its shares late on Thursday after conferring with the New York Stock Exchange following its presentation on third-quarter results, which recorded a loss of $216.7m, or 45 cents a share, swinging from net income per share of $141.1m, or 32 cents a share.

Calpine on Friday corrected its EBITDA, as adjusted for non-cash and other charges, from $516.4m to $379.6m for the third quarter. Calpine said this represented a non-cash item, and did not have an impact on the company’s reported loss per share, cash on hand or operating cash flow.

The company said the correction stemmed from its recording of a non-cash impairment charge of $136.8m during the quarter relating to the sale of its Ontelaunee Energy Center. Calpine said the charge was properly included in the discontinued operations adjustment to EBITDA, but that it was inadvertently added back in the line item “(Gain) on asset sales”.

Calpine also corrected its EBITDA, as adjusted for non-cash and other charges for the nine months to September 30, to $880.4m from $1,123.4m. This included a similar correction for the impairment of the Morris Power Plant of $106.2m, which was also inadvertently added back in the line item “(Gain) on asset sales” for the period

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