Evergreen Solar Inc. has filed suit in the U.S. Bankruptcy Court for the Southern District Court of New York against Barclays PLC, Lehman Brothers Holdings Inc. and some of their affiliated entities, declaring that Lehman Brothers did not have title to shares of Evergreen Solar's common stock (previously loaned by the company to Lehman Brothers in July 2008) and seeking their return.
Evergreen Solar is seeking to ultimately recover all of the 30.9 million loaned shares and has specifically demanded that Barclays immediately return the approximately 12.2 million shares that Evergreen Solar learned it obtained from Lehman Brothers after certain Lehman Brothers entities filed for bankruptcy. Pending a decision by the court regarding the return of the shares, Evergreen Solar has asked the court to prevent further transfer of the shares held by Barclays.
"We are outraged that a substantial number of our shares were transferred from Lehman Brothers in bankruptcy in complete disregard for Lehman Brothers' obligations to return the shares under its share lending agreement with Evergreen Solar," says Michael El-Hillow, chief financial officer of Evergreen Solar.
"This violation of our contract with Lehman was significantly compounded by the fact that Barclays was able to acquire this valuable asset, our shares, which Lehman no longer had the power to transfer to any party other than Evergreen Solar," he adds.
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