Evergreen Solar skips July 15 interest payments on 4% convertibles

By Caroline Salls

Pittsburgh, July 15 - Evergreen Solar, Inc. will not make the interest payments due July 15 on its 4% senior convertible notes due 2013 and 4% senior convertible subordinated additional cash notes due 2020 in light of the company's current liquidity and capital resources, according to an 8-K filed with the Securities and Exchange Commission.

A total of $4.08 million of interest was due on July 15 on the senior convertible notes and $90,444 on the senior subordinated notes.

If the payments are not made by Aug. 15, the notes can be accelerated. An acceleration of the notes could also trigger an event of default on the company's $170.36 million of 13% convertible senior secured notes due 2015, according to the 8-K.

Evergreen said its total outstanding obligations, including interest, as of July 15 are $207.88 million on the senior convertible notes and $5.59 million on the senior subordinated notes.

As previously reported, Evergreen is seeking opportunities to address its excess debt and debt service requirements in the near term, including a significant restructuring of its existing debt.

The company said it is in talks with debtholders to significantly deleverage and better position it to execute its business strategy.

Evergreen Solar makes solar-power products and is based in Marlboro, Mass.

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