Evergreen Solar eyes mediation with creditors committee, noteholders

By Lisa Kerner

Charlotte, N.C., Jan. 3 - Evergreen Solar, Inc. filed an emergency motion on Jan. 2 asking the court to direct the official committee of unsecured creditors and the supporting noteholders into mediation with Evergreen and to stay all litigation activities prior to Jan. 19, according to court documents.

Litigation includes the committee's motion to dismiss or convert the bankruptcy case and the supporting noteholders' motion for determination of value of adequate protection liens.

A hearing is requested for Jan. 5.

Evergreen cited litigation expenses and the reduction of currency available to creditors in a compromise as reasons for its filing of the motion.

As previously reported, the committee asked the court to dismiss the company's Chapter 11 bankruptcy case or convert it to Chapter 7 since Evergreen has sold substantially all of its assets and continues to accrue administrative expenses every day.

The creditor group wants the court to either dismiss the case and order the return of $3.75 million of unsecured notes to the noteholders or convert the case if it finds that the value of unencumbered assets available for distribution to unsecured creditors is likely to exceed the amount returned to the noteholders upon dismissal.

A hearing on that matter is set for Jan. 19.

Evergreen Solar is a Marlboro, Mass.-based producer of solar power. The company filed for bankruptcy on Aug. 15 under Chapter 11 case number 11-12590.

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