SOURCE: Sustainable Power Corp.

March 04, 2009 09:04 ET

Sustainable Power Corp. Will Counterclaim Borneo Oil

BAYTOWN, TX--(Marketwire - March 4, 2009) - Sustainable Power Corp. (PINKSHEETS: SSTP) determined today that Borneo Oil Senderian has filed baseless litigation against Sustainable Power. Sustainable Power intends to immediately and aggressively file a counterclaim against Borneo Oil not only for the $1,000,000 which they agreed to pay, but also for defamation, for the serious damages which Borneo Oil has caused in the diminution of SSTP's market value of stock for this frivolous and defamatory litigation, as well as for damages caused by Borneo Oil through its failure to provide funds which would have permitted Sustainable Power's development and completion of its reactors to manufacture oil and produce electricity.

In February 2008 Borneo Oil agreed to purchase a total of $2,000,000 in value of SSTP securities and paid $1,000,000 towards that amount, but failed to pay the remaining $1,000,000 despite numerous demands from Sustainable Power. The agreement with Borneo Oil for the purchase of these securities is undisputed -- they simply breached the agreement and failed to provide funding.

In September 2008, principals of Borneo Oil met at the Sustainable Power offices to seek to resolve this impasse. At that meeting, Borneo Oil agreed to provide the second $1,000,000 as soon as Sustainable Power filed its Form 10 Registration Statement and provided financial statements which Borneo could present to its investment banking partners. As an accommodation to Borneo Oil, Sustainable Power agreed to defer seeking to enforce Borneo's obligations until the Form 10 was filed. Upon filing the Form 10, Sustainable Power made a demand to comply with the agreement, and Borneo again refused. The baseless litigation from Borneo followed.

Of particular interest, all of the allegations in Borneo Oil's complaint stem from alleged "facts" and other information which substantially preceded this September 2008 meeting in Baytown and Borneo's agreement to provide the subsequent funding. Very clearly, Borneo Oil is simply desperately trying to avoid their obligation to Sustainable Power (which we believe is a result of the serious diminution in their own value and an apparent inability to move forward with financial obligations). The litigation will show that the "facts" alleged by Borneo Oil are baseless and defamatory, both to SSTP and the various professionals involved in the litigation.

"I was shocked that Borneo Oil through its counsel took this egregious step," reported SSTP CEO M. Richard Cutler. "I had recently met with principals of Borneo Oil who not only made no such allegations, but agreed to resolve this matter upon filing our Form 10. We will vigorously and aggressively enforce our rights and defend this offensive litigation and seek appropriate and substantial recourse from Borneo Oil."

About Sustainable Power Corp.

Sustainable Power Corp. is an international green energy total service provider focused on environmentally safe power generation. The company has the exclusive rights in the United States to develop and manage a portfolio of green energy plants utilizing a renewable fuel source able to be produced from non-food feed stock. For more information please visit www.SustainablePowerCorp.us.

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Contact Information

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