Calpine Canada's $359.77 million notes sale approved

By Caroline Salls

Pittsburgh, July 26 - Calpine Canada Energy Finance ULC affiliate Calpine Canada Resources Co. obtained approval of the sale of its $359.77 million of 8½% senior notes due 2008 from the Court of Queen's Bench of Alberta in the Judicial District of Calgary, according to a company news release.

The notes were issued by Calpine Canada Energy Finance ULC and are guaranteed by Calpine Corp.

According to the release, the sale order was granted in conjunction with proposed notes claim settlements among Calpine, its creditors that are in Canadian Companies' Creditors Arrangement Act proceedings and holders of the ULC1 senior notes.

In addition, Calpine Power, LP has requested a stay of the settlement order pending the outcome of an appeal.

The Canadian court has asked Calpine Power to seek the stay directly from the Alberta Court of Appeal.

As previously reported, Calpine obtained tentative approval of the cross-border claims settlement Tuesday from both the Canadian court and the U.S. Bankruptcy Court for the Southern District of New York.

Calpine, a San Jose, Calif., power company, filed for bankruptcy on Dec. 20, 2005. Its Chapter 11 case number is 05-60200.

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