Some unexpected obstacles got in the way, but after a year-long regulatory review, Troutman Sanders partner Terry C. Bridges was able to help close a deal on behalf of a New Mexico utility company.

Bridges’ client, PNM Resources Inc., on Jan. 30 closed on the $640 million sale of its natural gas operations in New Mexico to Continental Energy Systems LLC. Continental is owned by funds controlled by New York private equity firm Lindsay Goldberg LLC. Following its purchase of PNM Resources’ natural gas assets, Continental renamed the business New Mexico Gas Co.

When the deal was first announced in January 2008, the companies expected the deal to close in December, pending approval by the New Mexico Public Regulatory Commission. While the actual closing was only slightly delayed, the closing process presented some unforeseen challenges, according to Bridges.

For one, there were interested parties that didn’t like elements of the deal. The U.S. National Nuclear Security Administration (NNSA) filed a motion with the New Mexico PRC to block the deal, saying they objected to PNM Resources’ plan to retain all of the financial gain from the sale of the assets. The NNSA wanted PNM Resources to share the financial gain with the utility’s ratepayers.

However, the New Mexico PRC ultimately ruled against the NNSA and allowed PNM Resources to book the entire gain, Bridges said. As part of that agreement, Continental agreed to freeze base rates for three years.

Later, a New Mexico municipality filed an objection to the sale. The city wanted a right-of-first-refusal to purchase a gas pipeline that runs through its city limits, if the gas line was ever again put up for sale. But once again, the New Mexico PRC ruled in favor of PNM Resources, Bridges said.

The global credit crunch also didn’t stop the deal from happening, even though the buyer is controlled by a private equity fund, Lindsay Goldberg. Among the banks that participated in financing Continental’s purchase is Royal Bank of Canada, Bridges said.

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Jones Day partner Sterling A. Spainhour Jr. in Atlanta recently pitched in to help Flowers Foods Inc. expand its reach in selling sandwich bread, rolls, buns and snack cakes.

Flowers, of Thomasville, Ga., reached two separate purchase agreements for baking companies in the past month: Holsum Bakery Inc. of Phoenix for $150 million, and ButterKrust Bakery of Lakeland, Fla., for $90 million. Both deals are subject to regulatory approval. Spainhour, who was lead counsel to Flowers on both transactions, declined to comment.

Holsum Bakery operates two bakeries in Arizona and sells bread in Arizona, California and Nevada under the Holsum, Aunt Hattie’s and Roman Meal brands. ButterKrust operates one bakery and distributes bread products in Florida under the Country Hearth, Rich Harvest and Sunbeam brands.

Flowers’ brands include Nature’s Own, Cobblestone Mill, Sunbeam and Bunny Bread.

Flowers’ general counsel is Stephen R. Avera. Snell & Wilmer was counsel to Holsum Bakery. ButterKrust’s counsel wasn’t disclosed.