Energy Conversion Devices Inc. (ECD) and its wholly owned subsidiary United Solar Ovonic LLC (USO) are canceling the auction of USO, which was scheduled for this week, and discontinuing the court-approved sale process.
The companies failed to receive an acceptable qualified offer by the bid deadline. Quarton Partners, the companies' investment banker, is continuing to work with prospective buyers on alternative transactions. In addition, the companies have retained auction services provider Hilco Industrial to prepare for an orderly sale of the companies' assets.
Therefore, the companies will immediately begin reducing their workforce, terminating approximately 300 employees worldwide. ECD and USO plan to retain a smaller workforce to support the bankruptcy process and the sale of its solar and other assets, including ECD's interest in Ovonyx Inc. USO is also retaining a small number of employees to continue to develop its core solar technologies under government-funded contracts.
ECD and USO voluntarily filed a petition for relief under Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Michigan on Feb. 14.
