Evergreen Energy Inc., a developer of alternative fuel products, filed for bankruptcy protection earlier this week, citing a lack of financing that the company said made it impossible to maintain operations.
The company listed assets of about $240 million and debt of $25 million in Chapter 7 documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware. Chapter 7 proceedings let companies liquidate their assets while being protected from creditors.
Evergreen “remains unable to obtain additional financing and, given its current financial condition, there is substantial doubt that the company will be able to continue operations,” Evergreen said in a Jan. 13 filing with the U.S. Securities and Exchange Commission.
The company was notified by its partner in a joint venture in China that both had to raise from $40 million to $50 million for design and construction of a so-called K-Fuel facility in China to meet an agreement signed by the Chinese partner with a coal mining company on Dec. 22, 2011, according the SEC filing.
