U.S. Energy Systems gets another week to negotiate settlement with Fogel, Nakash

By Rebecca Melvin

New York, Feb 4 - U.S. Energy Systems Inc. again received approvals from courts in Delaware and New York to stay proceedings and postpone a special meeting of stockholders, a spokesman for the company said Monday.

The adjournments were approved for one week to allow the company more time to try to achieve a settlement in lawsuits brought by shareholders, including Asher E. Fogel, former chairman and chief executive of U.S. Energy Systems, and Nakash Energy LLC, which holds 15.3% of the company's stock.

The Chancery Court of the State of Delaware in December ordered the company to hold a stockholders' meeting as a result of litigation brought against the company by Fogel. That meeting is now scheduled for Feb. 12, after being postponed from Jan. 29 and Feb. 5.

The U.S. Bankruptcy Court for the Southern District of New York continued an adjournment that began last week with respect to the company's motion for an order enforcing the automatic stay and adjudging Asher to be in contempt.

Two procedural orders were entered at the bankruptcy court, however, including a request to hire Jefferies & Co. Inc. as financial advisor, said spokesman Joel Steinhaus of Kekst & Co.

Kekst is a public relations firm representing U.S. Energy Systems.

Filing for bankruptcy were the parent and two subsidiaries: U.S. Energy Overseas Investments LLC and GBGH LLC, which owns 79% of a group of UK-based natural gas companies.

"The company is currently considering all restructuring and sale alternatives," Steinhaus told Prospect News.

The next bankruptcy court hearing is scheduled on Feb. 11.

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

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