Evergreen Solar Files Chapter 11

Evergreen Solar shares are down more than 60% Monday after the company filed a Chapter 11 bankruptcy in federal court in Delaware. The stock seems likely to expire worthless. In connection with the filing, the struggling solar company said it reached a deal with holders of more than 70% of its outstanding 13% convertible senior secured notes to start a restructuring process that will include the sales of the company’s String Ribbon silicon wafer technology business. A company created by the noteholders called ES Purchaser will serve as a stalking horse bidder for the company’s assets. Evergreen said day-to-day operations will go on, and that it will continue to pay suppliers and vendors. As part of the reorganization, the company will cut 65 jobs in the U.S. and Europe, including suspension of operations at its Midland, Michigan plant. Here’s the nut of the story for investors: Evergreen said that “based upon the estimated value of the company’s assets, the assets are expected to be insufficient to satisfy all its obligations to its creditors. Accordingly, it is expected that no distributions will be made to holders of common stock and the common stock will be extinguished upon consummation of the Chapter 11 plan.”

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

Joyce Dayton Corp - Solar Tracking Drive Solutions

Joyce Dayton Corp - Solar Tracking Drive Solutions

Joyce Solar Actuators are designed to precisely position smaller solar tracking equipment. Their robust and efficient DC motor (24V or 36V) keeps power consumption to a minimum. Travel speeds remain nearly constant regardless of the load. Ideal for rugged environments common to the solar industry, these cost-effective SA actuators have an IP65 protection rating. Self-locking features in the mechanism ensure that the solar actuator will hold position throughout the daily tracking cycle. Specifications: • Double clevis mounting for easy installation • Clutch for overload protection • Adjustable limit switches for flexible travel settings • Reed sensor digital feedback for accurate positioning • Duty cycle is 25% (4 min. running, 12 min. rest) • Lubricated for life