Evergreen extends 10% notes' maturity, ups principal to $17.25 million

By Devika Patel

Knoxville, Tenn., Dec. 18 - Evergreen Energy Inc. said it entered into a binding term sheet to restructure its March 20 10% note purchase agreement to extend the note's maturity to the earlier of June 30, 2010 or upon the sale of Buckeye Industrial Mining Co.

As part of the restructuring, the principal of the notes has been increased by $2.25 million to $17.25 million.

"The restructuring and extension of the terms of these notes enables Evergreen to remain focused on our efforts to commercialize GreenCert, remarket Buckeye and proceed with the intent to spin off K-Fuel," chief executive officer Thomas H. Stoner, Jr. said in a press release. "We continue to evaluate opportunities to sell Buckeye at the most advantageous terms to the company and its shareholders."

Under the restructured terms, Evergreen will use its best efforts to issue additional common equity by Jan. 31, and enter into a binding agreement for the sale of Buckeye by March 31. Failure to meet either of these deadlines would constitute an event of default.

Evergreen Energy, based in Denver, refines coal into a cleaner solid fuel.

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