U.S. Energy granted shorter-than-requested exclusivity extension

By Jennifer Lanning Drey

Portland, Ore., July 22 - U.S. Energy Systems Inc. obtained a second extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The exclusive plan-filing period was extended to Aug. 22 from July 8 and the solicitation period to Oct. 21 from Sept. 8.

U.S. Energy had asked the court to extend the exclusive plan-filing period to Sept. 8 and the solicitation period to Nov. 7.

When requesting the extension, U.S. Energy said a dramatic improvement in the price of electricity in the United Kingdom has increased the enterprise value of the company's U.K. subsidiaries. The increase has altered restructuring negotiations in favor of constituencies previously thought to be out of money, according to the filing.

Avon, Conn.-based U.S. Energy Systems filed for bankruptcy on Jan. 9, 2008. Its Chapter 11 case number is 08-10054.

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