U.S. Energy Systems files liquidating plan of reorganization

By Caroline Salls

Pittsburgh, Aug. 25 - U.S. Energy Systems, Inc. and U.S. Energy Overseas Investments, LLC filed a joint liquidating plan of reorganization Friday with the U.S. Bankruptcy Court for the Southern District of New York.

The plan distributions will be funded by the proceeds of the company's U.S. Energy Biogas Corp. shares.

A liquidation trust will be established, and all assets will be transferred to the trust.

Treatment of creditors will include:

• Holders of administrative claims, third-lien secured claims, secured U.S. Energy Biogas guaranty claims, priority non-tax claims and priority tax claims will be paid in full in cash;

• Holders of second-lien secured claims will receive $1;

• Holders of general unsecured claims will receive their share of the class A units of the liquidation trust;

• Holders of U.S. Energy Systems, Inc. interests will receive their share of class B units of the liquidation trust; and

• U.S. Energy Overseas Investments, LLC interests will be cancelled.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.