USEY buyout offer:
should be 2.41/share???? currently at 1.28
Silver Point Offers To Buy US Energy Sys Unit For $9M >USEYLast update: 8/6/2007 8:14:31 AM
DOW JONES NEWSWIRES
Silver Point Capital LP said Monday that it recently sent a letter to U.S. Energy Systems Inc. (USEY) offering to acquire 100% of the company's U.S. Energy Biogas Corp. unit for $9 million. U.S. Energy Biogas, the New York company's renewable-energy business, emerged from bankruptcy protection in late May. The unit, which extracts biogas - mainly methane and carbon dioxide - for conversion into electricity, had been reorganizing under Chapter 11 since November, after failing to negotiate terms of key loans with lenders. Parent company U.S. Energy Systems, which provides services to develop and run small to midsize power plants, wasn't in bankruptcy. In its letter, dated Aug. 3 and filed with the Securities and Exchange Commission, Silver Point said it's willing to consider alternatives to provide U.S. Energy Systems with funds equal to the cash purchase price before the acquisition. Silver Point also said it understood that another unit of the company, U.S. Energy Overseas Investments LLC, wants to increase the availability under its credit agreement. Silver Point said it's "amenable" to this and would be willing to consider an increase to the pact of $8 million. Silver Point has conducted "extensive business due diligence to date" and is prepared to move "expeditiously" with further discussions and any remaining diligence, according to the letter. Before entering into any definitive and binding documentation with respect to the transaction, Silver Point would need to conduct "limited confirmatory business diligence," it said. Last month, U.S. Energy Systems hired Jefferies & Co. (JEF) to help it evaluate its existing financing as well as strategic alternatives. The company also appointed Richard Nevins interim chief executive. In June, U.S. Energy Systems had said it would be unable to meet its operating requirements and certain contractual obligations as they became due as early as August unless it arranged a refinancing. Silver Point said it has had, and may have in the future, discussions with U.S. Energy Systems' management and may make suggestions concerning the company's operations, prospects, business and financial strategies, assets and liabilities, business and financing alternatives. Shares of U.S. Energy Systems closed Friday at $1.05. -Brian Coyle, Dow Jones Newswires; 202-862-3545 (END) Dow Jones NewswiresAugust 06, 2007 08:14 ET (12:14 GMT)
