U.S. Energy Biogas Settles Principal Chapter 11 Issue

U.S. Energy Biogas Settles Principal Chapter 11 Issue

U.S. Energy Biogas Settles Principal Chapter 11 Issue
- Agreement Removes Primary Obstacle to USEB’s Reorganization and Enables USEB to Refinance and Exit Chapter 11 -
NEW YORK--(BUSINESS WIRE)--U.S. Energy Biogas Corp. (“USEB” or “the Subsidiary”), a U.S.-based renewable energy business, announced today that it has reached an agreement in principle with Countryside Power Income Fund (“Countryside” or “the Fund”) concerning the principal issue in USEB’s Chapter 11 filing in the United States Bankruptcy Court for the Southern District of New York. The agreement will enable USEB and its parent, U.S. Energy Systems, Inc. (Nasdaq: USEY), to establish new financing for USEB that should enable it to pay all of its creditors in full, exit bankruptcy quickly, and support the growth of the business for the benefit of USEY’s shareholders. Upon approval of the agreement by the United States Bankruptcy Court in the Southern District of New York overseeing USEB's Chapter 11 reorganization case, as well as each party's respective boards, USEB expects to be able to move immediately toward an expedited confirmation of a Chapter 11 plan of reorganization.