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 U.S. 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.

Ernst & Young Inc. was the Court-appointed Monitor of the Canadian Debtors (Murray McDonald and Neil Narfason), represented by Pat McCarthy, Q.C. and Josef Krüger of Borden Ladner Gervais LLP.