Sale of Intercompany Claims by Calpine Canada Debtors

On December 10, 2007, Calpine Canada Energy Limited and certain of its subsidiaries that were debtors in Calpine Canada's CCAA proceedings before the Court of Queen's Bench of Alberta (the “Canadian Debtors”) completed a sale of approximately US$240,000,000 of intercompany claims held by the Canadian Debtors against certain US Calpine affiliates that were debtors in Calpine Corporation's Chapter 11 proceedings before the United States Bankruptcy Court for the Southern District of New York. The intercompany claims were sold or assigned by the Canadian Debtors to Lehman Brothers Inc., and then immediately sold by Lehman Brothers to certain eligible purchasers. The intercompany claims were sold pursuant to an Order of the Court obtained by the Canadian Debtors in the CCAA proceedings that approved a unique sale process for the sale of these assets.

The Canadian Debtors and sellers of the intercompany claims were represented by Toby Austin, CEO of Calpine Canada, and by its restructuring counsel Goodmans LLP, with a team that included Jay Carfagnini, Brian Empey, Joe Pasquariello and Brendan O'Neill (corporate restructuring and insolvency), with assistance from McCarthy Tétrault LLP (Calgary), with a team that included Larry Robinson, QC, and Sean Collins (corporate restructuring and insolvency); and Wilmer Cutler Pickering Hale and Dorr LLP, as US bankruptcy and securities counsel, with a team comprised of James Millar, Eric Markus and Thomas White.

Lehman Brothers (Dan Kamensky) was represented by Jay Swartz and Rob Murphy of Davies Ward Phillips & Vineberg LLP and McDermott Will & Emery, as US counsel, with a team that included Thomas Conaghan and Nathan Coco. Ernst & Young Inc. was the Court-appointed Monitor of the Canadian Debtors (Murray McDonald and Neil Narfason), represented by Pat McCarthy, QC, and Josef Krüger of Borden Ladner Gervais LLP. Ken Coleman of Allen & Overy LLP acted as US counsel.


Robert S. Murphy Jay A. Swartz Larry B. Robinson Derek E. Haines Sean F. Collins Brian F. Empey Patrick T. McCarthy Brendan O'Neill Joe Pasquariello Jay A. Carfagnini Toby J. Austin