Raser, Evergreen-FE cut deal, agree to expedited plan confirmation

By Jim Witters

Wilmington, Del., July 26 - Raser Technologies Inc. and Evergreen-FE Lightning Dock LLC reached agreement Tuesday on a deal to adjust the treatment of Lightning Dock's creditors and gain approval of Raser's reorganization plan from "every major creditor," the debtor's attorney said.

Peter S. Partee, representing the debtors, and Evergreen-FE attorney Alan E. Gamza huddled throughout the day Tuesday after judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware asked them to try to work out their differences. Partee announced the agreement late Tuesday afternoon. But neither party offered details of the revised reorganization plan.

"It will be in the disclosure statement. You will have to read it there," Partee said after the hearing concluded.

Evergreen-FE had sought to end Raser's exclusive period as it pertained to Lightning Dock Geothermal HI-01 LLC, which is a subsidiary of Raser. Evergreen-FE offered a reorganization plan for Lightning Dock Geothermal that treated Lightning Dock creditors much more favorably than the Raser plan did, Gamza said.

Gamza argued that the court should allow both proposed plans to move forward through the process simultaneously. He said waiting until the scheduled Sept. 7 confirmation hearing to consider alternate plans would place Lightning Dock into an untenable situation.

"The DIP [debtor-in-possession facility] will expire, and we will face foreclosure," he said.

Judge Carey said his initial reaction to receiving Evergreen-FE's plan was to allow them to "dual-track."

"But I am a firm believer in the principle that the debtor has first shot at the reorganization plan," he said.

FE-Evergreen is a collaboration between the FE Clean Energy Group and Evergreen Clean Energy LLC.

Lightning Dock Geothermal HI-01 LLC, signed an agreement with Evergreen-FE Lightning Dock LLC in January to fund the development of Raser's first production well at the company's second geothermal power project, Lightning Dock, N.M., according to a January press release from Raser.

Partee said he plans to revise the disclosure statement and file it "ASAP." Judge Carey, at the request of the parties, scheduled a confirmation hearing for Aug. 18.

Raser, based in Provo, Utah, is a technology licensing and development company focused on geothermal power generation. The company filed for bankruptcy on April 29, and its Chapter 11 case number is 11-11315.

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