vitamin_j

Evergreen Solar: Why This Overlooked Company Is a Good Investment

In the spirit of being truly anal (while not having legal expertise):

I would say that "Evergreen is a partner IN EverQ" would probably be the most accurate statement. I would say that it's germane to this discussion because Evergreen shares in EverQ losses as well as providing it financing. Perhaps this is what Honeycutt is trying to tell me.

Under German law:

German Regulatory Authorities Approve EverQ Partnership Agreements
21/12/2006 - 22:04

Evergreen Solar, Inc. (Nasdaq: ESLR), Q-Cells AG (FSE: QCE) and Renewable Energy Corporation ASA (OSEAX: REC.OL) (REC) today announced that regulatory authorities in Germany have approved previously announced partnership agreements that make the companies equal partners in EverQ, which manufactures solar modules in Thalheim, Germany. Effective December 19, 2006, all three partners will share equally in the net income generated by EverQ.

From the June 28 10-Q:

The Company is currently a one-third owner of EverQ GmbH (“EverQ”), a joint venture with Q-Cells AG (“Q-Cells”) and Renewable Energy Corporation ASA (“REC”), and licenses to EverQ its wafer manufacturing technology used to manufacture solar panels. The Company accounts for its ownership interest in EverQ using the equity method of accounting in accordance with APB 18 “Equity Method of Accounting for Investments in Common Stock.” Under the equity method of accounting, the Company reports its one-third share of EverQ’s net income or loss as a single line item in its condensed consolidated income statement and its investment in EverQ as a single line item in its condensed consolidated balance sheet.

EverQ Debt Guarantee
On April 30, 2007, the Company, Q-Cells and REC entered into a Guarantee and Undertaking Agreement in connection with EverQ entering into a loan agreement with a syndicate of lenders led by Deutsche Bank AG (the “Guarantee”). The loan agreement provides EverQ with aggregate borrowing availability of up to 142.0 million Euros. Pursuant to the Guarantee, the Company, Q-Cells and REC each agreed to guarantee a one-third portion of the loan outstanding, up to 30.0 million Euros of EverQ’s repayment obligations under the loan agreement.