SEC Filing: Evergreen Solar - EC's state aid recovery order [Sovello]
( February 5, 2010, 14:58 GMT | Official Statement) -- MLex Summary: In a filing for investors, Evergreen Solar has indicated that Sovello - a joint-venture it holds with Q-Cells - is likely to appeal a decision issued by the European Commission ordering the German government to recover illegally granted state aid.Extract: On January 29, 2010, the European Commission (“the Commission”) announced a decision that a certain portion of the grants (the “SME Bonus”) which had been awarded to Sovello (formerly EverQ GmbH) in 2006 for the construction of Sovello’s first integrated production line (Sovello 1) should be recalled. Sovello is the “Registrant’s joint venture with Q-Cells SE (“Q-Cells”) and Renewable Energy Corporation ASA. The amount to be recalled, 9.1 million Euros (plus approximately 2.5 million Euros in interest) (in total approximately $16.2 million at current exchange rates) was paid to Sovello as a special bonus available only to small and medium-sized companies. The Commission ordered the German authorities to recover the SME-Bonus from Sovello. The Registrant may be required to provide funding to Sovello to repay a portion of the SME bonus pursuant to an Undertaking dated October 6, 2008 made to a consortium of banks led by Deutsche Bank AG that have loaned funds to Sovello....
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