Energy Conversion Devices eyes approval of bid procedures for sale of solar business unit

By Lisa Kerner

Charlotte, N.C., Feb. 24 - Energy Conversion Devices, Inc. and United Solar Ovonic LLC asked the court to approve the procedures in connection with a potential sale of the stock or assets that comprise the debtors' solar business unit; enter into a stalking horse agreement in connection with the sale; and approve a break-up fee and expense reimbursement provision, according to documents filed on Friday with the U.S. Bankruptcy Court for the Eastern District of Michigan.

A hearing is set for March 14.

Despite the debtors' cost-cutting and restructuring efforts over the last several years, including temporarily suspending PV manufacturing operations in response to low volumes, the debtors initiated the Chapter 11 cases to maximize value for their creditors by attracting new capital through a sale of all or substantially all of their assets, the filing said.

The debtors asked the court to approve a stalking horse agreement and a stalking horse bidder, as well as a breakup fee of 2.5% of the total cash consideration offered for the assets plus expenses up to $300,000 if the stalking horse bidder is not the winning bidder at auction.

Qualified bids will be due by 5 p.m. ET on April 17, and the auction will be held April 24.

The sale hearing will be held on April 24.

Rochester Hills, Mich.-based Energy Conversion Devices makes thin-film flexible solar laminate products for buildings. The company filed for bankruptcy on Feb. 14 in the U.S. Bankruptcy Court for the Eastern District of Michigan. The Chapter 11 case number is 12-43166.

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