Evergreen Solar receives common stock delisting notice from Nasdaq

By Caroline Salls

Pittsburgh, Aug. 16 - Evergreen Solar, Inc.'s securities will be delisted from the Nasdaq Stock Market LLC, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

The company received the delisting notification following its Chapter 11 bankruptcy filing.

Evergreen Solar said it does not plan to appeal the delisting. As a result, trading of the company's common stock will be suspended at the opening of business on Aug. 24.

The company said it received a deficiency letter from Nasdaq on July 5 stating that, based on the closing price of its common stock for the last 30 consecutive business days, Evergreen Solar no longer met the minimum $1 per share requirement for continued listing.

In addition, Nasdaq said the company was no longer in compliance with the minimum market value requirement for continued listing, which requires the company to have a minimum value for its listed securities of $35 for at least 30 consecutive business days.

After the common stock is delisted by Nasdaq, it may trade on the OTC Bulletin Board or the Pink OTC Markets Inc. but only if at least one market maker decides to quote the company's common stock.

According to the 8-K, Susan F. Tierney resigned as an Evergreen Solar director on Sunday for personal reasons.

The board reduced its size to five so there is no vacant seat to fill after Tierney's resignation.

As previously reported, the board approved a key employee incentive plan that is supported by the holders of the company's 13% convertible senior secured notes.

The plan calls for the allocation to key employees of an amount equal to 5% of gross cash sale proceeds from a third party.

The allocation would not be made under the supporting noteholders' credit bid or an acquisition vehicle in which management has an equity interest of more than 20% or has committed more than $1 million. The incentive plan allocation amount will be at least $1 million.

Evergreen said in the 8-K that chief executive officer Michael El-Hillow will be allocated 35% of the key employee incentive plan, chief technology officer Lawrence Fenton will be allocated 25% and Chinese operations president Yeok Chan (Henry) Ng will be allocated 10%.

The remaining portion of the key employee incentive plan will be allocated to four other senior executives, the 8-K said.

Evergreen Solar makes solar-power products and is based in Marlboro, Mass. The company filed for bankruptcy on Aug. 15 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 11-12590.

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