Energy Conversion Devices Inc. (ECD), a provider of flexible solar laminates and systems for the building-integrated and commercial rooftop market, and its wholly owned subsidiary United Solar Ovonic LLC (USO) have announced that a bankruptcy court in Michigan has confirmed its joint plan of liquidation.
The U.S. Bankruptcy Court for the Eastern District of Michigan entered a confirmation order in respect of the Second Amended Joint Plan of Liquidation of ECD and USO. The confirmation order is expected to become final on Aug. 14 (assuming there are no appeals of the order before that time), at which time the plan will become effective.
According to ECD, the plan obtained overwhelming support from all classes of voting creditors. The plan provides for the treatment of claims against ECD and USO and equity interests in ECD.
ECD and USO have completed sales of substantially all of their machinery, equipment and inventory, and are in the process of conducting sales of their intellectual property, real estate holdings, interest in Ovonyx Inc. and other miscellaneous assets. The plan provides for a liquidation trust to complete the liquidation, wind up the affairs of ECD and USO and distribute the cash to creditors of each company on a consolidated basis.
The plan also establishes a warranty trust to settle warranty claims. The liquidation trust and warranty trust will be managed by an oversight committee comprising selected unsecured creditors. On the effective date of the plan, all equity interests in ECD will be canceled.
ECD and USO were represented by Honigman Miller Schwartz and Cohn LLP in the Chapter 11 cases, and their financial adviser was AlixPartners LLP.