U.S. Energy Systems' plan of reorganization effective as of Dec. 10

By Lisa Kerner

Charlotte, N.C., Dec. 14 - U.S. Energy Systems, Inc.'s plan of reorganization became effective on Dec. 10, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The plan was confirmed on Oct. 12, according to the filing.

As previously reported, funds for distribution under the amended plan filed on July 2 would come from cash on hand, including asset sale proceeds and the proceeds from prosecution of avoidance actions.

A plan administrator will make distributions to creditors from either a plan fund or unsecured distribution fund.

Treatment of creditors under the amended plan will include:

• Holders of secured claims will either be paid in full in cash or receive the collateral securing their claims;

• Holders of administrative claims and priority claims will be paid in full in cash;

• Holders of general unsecured claims will receive a share of an unsecured distribution fund to the extent there is enough money in the fund to justify the distribution; and

• Interest holders will receive no distribution.

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.

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