news headline from citi =says sell off unfounded.

9:30 (Dow Jones) Citigroup says Cheniere Energy's (LNG) Sabine Pass unit appears not be in default. Yesterday, (LNG) and Cheniere Energy Partners (CQP) fell 35% and 22%, respectively, after the company said it filed a defamation lawsuit against a hedge fund that alleged Cheniere strayed from GAAP and that its Sabine Pass unit was in default under the terms of some notes. But Sabine Pass, LNG, and CQP "all received unqualified audit opinions from Ernst & Young," last week, firm says. "We view recent volatility around the price of LNG shares and units of CQP as somewhat unfounded...In our opinion, Sabine Pass LNG is not in default." (christopher.dieterich@dowjones.com)