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Evergreen OK’s recapitalization plan

Associated Press / December 8, 2010

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MARLBOROUGH — Evergreen Solar Inc. said its board of directors has approved a plan to recapitalize the debt-laden maker of solar-power products.

The plan would slash outstanding debt and annual interest expense, extend the due date and lower the cost on some longer-term debt, and provide incentive to convertible debt holders to exchange their notes for shares in the company.

Evergreen would look to raise capital by selling up to $40 million of its new 4 percent convertible subordinated additional cash notes, due 2020. It also would implement a 1-for-6 reverse stock split approved by shareholders in July. And it would double shares of common stock to 240 million.

The company plans to hold a special meeting of shareholders early next year to hold a vote on the recapitalization plan.