The proceeds from the Buckeye sale, which is anticipated to close in mid-May 2010, but in any event no later than June 30, 2010, will be used to retire the outstanding 2009 convertible notes including fees and accrued interest of $21.1 million, to fund related transaction expenses estimated at $2.5 million and for general working capital purposes.
“This transaction represents a significant milestone for Evergreen in 2010 in the execution of our continuing plan to focus on the commercialization of GreenCert and related technologies and alliances,” said Thomas H. Stoner, CEO, Evergreen. “We have long maintained our belief in the K-Fuel technology as a solution to improving the quality of low rank coal. With the recent progress in China, we are no longer pursuing the spin-off of the K-Fuel technology as contemplated by the term sheet announced on January 7. However, we have maintained strong relationships in China and we continue to negotiate through our China joint venture with a large utility and chemical manufacturer in China to support the development of the K-Fuel plant in Inner Mongolia.”