The Firm has represented Countryside Power Income Fund, a Canadian income fund, and its subsidiaries and managers in the chapter 11 reorganization of U.S. Energy Biogas Corp. ("USEB") and its subsidiaries, which operate 23 co-generation plants in the United States. USEB, which owed Countryside approximately $90,000,000, filed for bankruptcy November 29, 2006 in the United States Bankruptcy Court for the Southern District of New York and asserted a host of "lender liability" theories against Countryside and its managers in an effort to reduce or defeat Countryside's claims. The assertions drove the price of Countryside's equity securities, which trade on the Toronto Stock Exchange, down 35%. After the initial hearing in the case, Countryside replaced its counsel with Simpson Thacher, because of the firm's significant experience in defending "lender liability" claims. When the Firm defended Countryside's position vigorously, the parties reached a settlement awarding Countryside a claim for $99,000,000, plus additional interest, accompanied by full releases of all the Firm's clients. After the settlement was announced, Countryside's securities quickly returned to the value at which they had traded prior to USEB's bankruptcy. USEB paid the final installment of Countryside's claim in full on May 31, 2007.
The team at STB was comprised of Tom Rice, Mark Thompson, Kathy McLendon, Nicole Friedlander, Alex Simkin, Paul Quigley and Anne Knight, ably assisted by paralegals Christina Fox and Tracy Williams.