Intervention Energy Holdings LLC faced off yesterday with lender EIG Global Energy Partners to defend its nascent reorganization, the Wall Street Journal reported today. Intervention’s May 20 chapter 11 filing was immediately met with opposition from EIG, which quickly asked Bankruptcy Judge Kevin Carey to dismiss the case. EIG, which invests in energy-related debt and equity, took ownership of a single share of Intervention last year in connection with a forbearance agreement. As part of the agreement, Intervention agreed to secure 100 percent shareholder approval before filing for chapter 11 protection. However, since it never signed off on the filing, EIG says the chapter 11 wasn’t authorized and should be dismissed. At Thursday’s hearing, EIG’s attorney focused on the forbearance agreement and its ownership stake, calling the bankruptcy filing “a breach of contract.” EIG has also argued in court papers that “there is no possibility for reorganization” and that a bankruptcy proceeding won’t benefit creditors.
