U.S. Energy Systems looks to extend exclusive plan vote solicitation period

By Caroline Salls

Pittsburgh, Nov. 21 - U.S. Energy Systems, Inc. requested an extension to its exclusive period to solicit votes on its plan of reorganization, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company wants to extend the exclusive solicitation period to Feb. 27 from Dec. 5.

According to the motion, since U.S. Energy Systems filed its plan of reorganization in August, there has been a worldwide economic downturn, a freezing of the credit markets and a steep decline in natural gas prices.

In addition, the company said its U.K. subsidiaries have experienced significant and unexpected operational issues.

U.S. Energy Systems said all of these factors have significantly changed its economic outlook, "mandating substantial amendments to the Chapter 11 plans."

The company said negotiations with Silver Point Finance, LLC have culminated in nearly final stalking horse agreements for the sale of the company's stock or assets, as well as a term sheet for the restructuring of debtor GBGH, LLC.

A hearing is scheduled for Dec. 3.

U.S. Energy Systems, a New York-based owner of green power and clean energy and resources, filed for bankruptcy on Jan. 9, 2008. Its Chapter 11 case number is 08-10054.

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