U.S. Energy Biogas first-day motions approved, including use of $1.2 million cash collateral

By Caroline Salls

Pittsburgh, Dec. 1 - U.S. Energy Biogas Corp. received court approval of its first-day motions Friday from the U.S. Bankruptcy Court for the Southern District of New York, including the use of up to $1.2 million in cash collateral that will allow continued normal business operations, according to a company news release.

"USEB's ability to use up to $1.2 million of cash collateral, along with the approval of other key first day pleadings, ensures that USEB will maintain normal business operations while we work to establish a viable capital structure for USEB through reorganization," chairman of U.S. Energy Biogas and president of parent U.S. Energy Asher E. Fogel said in the release.

In addition to the use of cash collateral, the company was granted court approval to pay employee wages, salaries and benefits without interruption and continue to use existing bank accounts and cash management systems on an interim basis.

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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