Evergreen Energy to exchange $18.75 million of 8% convertibles

By Susanna Moon

Chicago, Aug. 29 - Evergreen Energy, Inc. said it entered an agreement with certain noteholders to exchange $18.75 million principal amount of its 8% convertible secured notes due 2012 for 10.5 million of the company's common shares, with a par value $.001 per share.

The exchange will begin on Aug. 29 and end by Sept. 5, according to an 8-K filing with the Securities and Exchange Commission.

The notes are governed by an indenture dated July 30, 2007 between the company, Evergreen Operations, LLC, KFx Plant, LLC, KFx Operations, LLC, Landrica Development Co. and Buckeye Industrial Mining Co., and U.S. Bank NA, as trustee.

If the closings do not occur by the sixth trading date after their scheduled date because of a breach of the conditions by a party, then the non-breaching party has the option to terminate the agreement without liability, the company said in the filing.

The agreement does not contain an indemnification provision.

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

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