WORCESTER, Mass., March 3, 2011 /PRNewswire/ -- ThermoEnergy Corporation (OTC Bulletin Board: TMEN), a diversified technologies company engaged in the municipal and industrial wastewater treatment and power generation technologies, announced today that it has restructured its secured debt with a syndicate of major investors including Quercus Trust, Robert Trump, Empire Capital and Focus Fund.
"We are pleased to have reached another major milestone in improving our balance sheet," said Cary Bullock, CEO. "This debt restructuring, coupled with our debt restructuring completed in January of 2011, moves us a big step closer to resolving our capital structure issues, and makes the Company more attractive for the future acquisition of capital. Both restructurings include provisions for automatic conversion of the debt to equity."
"We're very pleased with the progress the company has made in the past year," said David Gelbaum of Quercus Trust. "This restructuring is a vote of confidence in the changes being made by the new management."
"Over the past 12 months, The Company has made tremendous progress in resolving many long-outstanding issues," said Focus Fund General Partner and ThermoEnergy board member, J. Winder Hughes. "Now that these issues have been resolved, the management team can devote its full attention to building revenues in ThermoEnergy's wastewater recovery business while working to bring the ZEBS™ emission-free technology for power generation to commercial scale."
In the restructuring, the major investors have agreed to extend the due date of this debt to February 29, 2012, and have also agreed to certain terms for automatic conversion of debt to equity. The major features of the transaction are described in an 8-K filing made by the Company with the SEC.
Founded in 1988, ThermoEnergy, is a diversified technologies company engaged in the worldwide commercialization of patented and/or proprietary municipal and industrial wastewater treatment and power generation technologies. Additional information on the Company and its technologies can be found on its website at www.thermoenergy.com.
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SOURCE ThermoEnergy Corporation