Evergreen Solar creditors vote to accept Chapter 11 liquidation plan

By Jim Witters

Wilmington, Del., July 11 - Evergreen Solar, Inc.'s general unsecured creditors voted to accept the company's Chapter 11 plan of liquidation, according to documents filed July 11 with the U.S. Bankruptcy Court for the District of Delaware.

The holders of general unsecured claims - the only class casting ballots - voted $211.8 million (97.64%) in amount and 88 (96.7%) in number to accept the plan, the filing states.

As previously reported, all objections to the plan were resolved before a June 4 hearing on the disclosure statement.

A plan confirmation hearing is scheduled for July 13.

Treatment of creditors

Under the plan, treatment of creditors includes:

• Holders of allowed administrative claims, priority tax claims and non-priority tax claims will be paid in full in cash;

• Holders of allowed non-noteholder secured claims, if any, will receive the net proceeds of the sale of their collateral;

• Holders of general unsecured claims - including all 4% convertible note claims and the 13% notes deficiency claim - will receive a share of the net proceeds of the sale of the debtor-retained, effective-date assets remaining after payment of administrative, priority and noteholder secured claims. The holders of the 13% notes deficiency claim will not be paid until after all others in the class have received an aggregate 1% recovery; and

• Holders of equity interests will receive no distribution.

Evergreen Solar is a Marlboro, Mass.-based producer of solar power. The company filed for bankruptcy on Aug. 15, 2011 under Chapter 11 case number 11-12590.

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