U.S. Energy Biogas files amended plan of reorganization to reflect change in Countryside claim treatment

By Jennifer Lanning Drey

Portland, Ore., May 22 - U.S. Energy Biogas Corp. filed an amended plan of reorganization that reflects changes made to the treatment of Countryside Power Income Fund claims, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the amended plan, Countryside will receive a cash payment for the allowed amount of its claim.

Under the previous plan, Countryside would have received full payment of its claim in either cash plus interest or cash for the full amount of the claim plus interest, minus $2 million but plus a U.S. Energy Systems contribution.

As previously reported, U.S. Energy Biogas' plan of reorganization is based on a settlement agreement with Countryside that gives Countryside Canada Power Inc., a subsidiary of Countryside, a $99 million secured claim against U.S. Energy Biogas, which will be the only allowed claim that Countryside will have in the Chapter 11 case.

Countryside has agreed to forgo any claim concerning U.S. Energy Biogas' April 8, 2004 royalty agreement with Countryside as well as any claim against U.S. Energy under its April 8, 2004 development agreement with Countryside.

Creditor treatment

Treatment of creditors under the amended plan will include:

• Administrative claims and priority tax claims will be paid in full in cash;

• Holders of priority non-tax claims, general unsecured claims and other secured claims will have their claims reinstated, entitling the holder to full payment;

• Countryside will receive a cash payment for the allowed amount of its claim;

• Holders of Illinois Commerce Commission claims will receive $5.25 million in cash, of which $250,000 will be placed in escrow and distributed according to terms of an Illinois Commerce Commission settlement agreement; and

• Holders of interests will have the rights to their interests reinstated.

U.S. Energy Biogas, an Avon, Conn.-based renewable energy business, filed for bankruptcy on Nov. 30. Its Chapter 11 case number is 06-12827.

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