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Evergreen Solar’s German JV Ordered to Return $16.2M Grant, May Declare Insolvency - CBL
By Citybizlist Staff
MARLBORO, Mass. -- Evergreen Solar Inc. (Nasdaq: ESLR) said its German joint venture Sovello has been ordered by the European Commission to return about $16.2 million because it had been wrongly granted a concession three years ago, according to an 8-K filing with the U.S. Securities and Exchange Commission.
Evergreen, a Marlboro-based maker of solar panels to generate power, estimated its liability to be at least $8.1 million. It also warned that Sovello may be forced to declare insolvency if it cannot resolve recent financial problems, including default of a bank loan since the end of 2008.
Sovello, formerly known as EverQ GmbH, is Evergreen's joint venture with Germany's Q-Cells SE and Norway's Renewable Energy Corp. ASA.
The European concession had been awarded to Sovello in 2006 for the construction of an integrated production line for photovoltaic solar cells.
The European Commission last month concluded that Q-Cells, which held a 24.9 percent stake in Sovello, exerted a significantly greater impact on the joint venture, and consequently the company cannot receive concessions offered to small and medium-size companies based on revenue and employment criteria.
After the determination, the commission ordered Sovello to repay 9.1 million euros, plus 2.5 million euros in interest. Evergreen said it had not decided whether to appeal.
Form 8-K filing: http://tinyurl.com/ybxvsld
Bio from Evergreen Solar's Web site:
Richard M. Feldt
President and CEO
RICHARD M. FELDT joined Evergreen Solar in December 2003 as Chief Executive Officer and President.
Most recently, Mr. Feldt served as Chief Executive Officer at Perseid, a developer of optical phased array technology created by Raytheon. Previously, he served as Chief Operating Officer of SupplierMarket.com, which was sold to Ariba. Prior to that, Mr. Feldt was Senior Vice President and General Manager of Worldwide Operations at Symbol Technologies (NYSE: SBL), where he contributed to doubling revenues in four years. As head of operations, Mr. Feldt increased Symbol's competitive advantage by streamlining its complex supply chain and significantly reducing cycle times and material costs. In addition, Mr. Feldt has held senior positions at A.T. Cross Company, Eastman Kodak Company, and Spectra-Physics, Inc.
Mr. Feldt received a bachelor's degree in industrial engineering from Northeastern University.
