U.S. Energy Biogas Enters Ch. 11

Law360, New York (November 30, 2006, 12:00 AM EST) -- U.S. Energy Biogas Corp. has filed for bankruptcy in Manhattan, citing its need to restructure an onerous loan agreement set up by “self-dealing” executives in 2004 that threatens to push the otherwise viable business into insolvency.

U.S. Energy Biogas Corp.’s business is “operationally healthy,” according to a company press release. But a loan agreement negotiated by the company’s former management with Countryside Power Income Fund has impaired USEB’s capital structure to the point where bankruptcy is the best option.

“Having failed in good faith efforts to...
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