12:50 ESLR Evergreen Solar is trading down 3.5% now, hearing certain 10-K info being perceived as negative (16.48 -0.76) -Update-
ESLR filed a 10-K yesterday, stating among other things, the following: "In June 2005, we signed two short-term supply contracts with MEMC (WFR) that we expected would provide our silicon supply through the first quarter of 2006... The contracts required significant upfront payments for initial shipments of silicon and provided for a reduced rate for subsequent silicon shipments... In early January MEMC advised us that it did not intend to fulfill its supply obligations under the contracts and instead intended to return the excess payments. Despite our best efforts we have been unable to find a resolution to this matter... In light of MEMC's refusal to meet its supply obligations under the contracts to date and the current state of our negotiations with MEMC to try and amicably resolve MEMC's supply obligations, we do not currently expect to obtain the approximately 52 MT remaining on the supply contracts... As a replacement to the expected supply of silicon from MEMC, we are sourcing chunk silicon. In order for us to use this form of silicon, it must be crushed in an additional process. This process increases the complexity and cost of sourcing this silicon, and has the added risk that the resulting material will be of inadequate purity or format to meet our requirements."