Evergreen Solar to abandon property
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Solar power products maker Evergreen Solar Inc. will appear before a Delaware judge on March 23 to request permission to abandon its Devens, Mass., facility.
Judge Mary Walrath of the U.S. Bankruptcy Court for the District of Delaware in Wilmington will preside over the hearing.
In court papers filed March 8, the debtor said it didn't have the funds to pay $543,000 in taxes for the property due May 1.
Evergreen Solar has failed to receive any qualifying offers for the facility since its bankruptcy filing, and it would be unlikely to sell the plant without accruing a significant amount of property taxes, court filings said.
Meanwhile, Walrath signed an order on March 6 approving a settlement among Evergreen Solar, its noteholders and unsecured creditors that will resolve a dispute related to liens on the debtor's assets.
The agreement, which is supported by noteholders, the official committee of unsecured creditors and U.S. Bank NA, will give the secured noteholders a lien on all the debtor's assets in addition to a $108.29 million deficiency claim. The deficiency claim would receive the same treatment as the debtor's unsecured creditors, but would only receive a distribution after the general unsecured creditors have received a 1% recovery.
