Lehman requests court OK of $230 million sale of Eagle Energy Partners

By Jennifer Lanning Drey

Portland, Ore., Oct. 2 - Lehman Brothers Holdings, Inc. requested court approval of the $230 million sale of Eagle Energy Partners I LP, a natural gas and electricity provider purchased by Lehman in 2007, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

EDF Trading North America Management LLC and EDF Trading North America Inc. have agreed to purchase the assets.

According to the motion, Eagle relies on Lehman for extensions of credit to fund its ongoing operations and currently owes Lehman $663.86 million under an intercompany loan note.

Under the proposed sale agreement with EDF, Lehman would forgive $433 million in outstanding debt under the loan and assign its remaining rights under the loan to EDF.

Lehman said in the motion that the proposed sale would avoid erosion of Eagle's value.

A hearing has been scheduled for Oct. 16.

New York-based Lehman Brothers Holdings is the fourth largest investment bank in the United States. The company filed for bankruptcy on Sept. 15. Its Chapter 11 case number is 08-13555.

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