Raser makes payment on Thermo I restructure

In Utah, Raser Technologies has managed to restructure the debt owed on the underperforming Thermo No. 1 geothermal power plant and has made a $27 million payment to get it moving. The payment came out of the project’s escrow accounts and the company waived compliance with certain debt-related covenants and obligations for the next year. Raser is due to make an additional payment of up to $6 million before June 29, 2011. In the 12 months in between, the company will be looking to sell some assets, which could help establish the value of other geothermal interests in Raser’s portfolio and hopes to further capitalize the company and pay down debt. The company believes – or hopes – if a third party with the capital to upgrade the generators at the Thermo No. 1 can be found, it will validate the larger Thermo area and demonstrate the viability of the resource.