Auburn Hills, Mich.-based Energy Conversion Devices (ECD), a provider of flexible solar laminates and systems for the building-integrated and commercial rooftop market, has filed for Chapter 11 bankruptcy protection in a Michigan court.
The company shut down its manufacturing production in November 2011 in an effort to financially restructure.
As part of its bankruptcy plan, ECD intends to sell, through separate sales, its wholly owned operating subsidiary United Solar Ovonic LLC (USO) and other assets. USO, which will continue to operate during the sales process, has filed for bankruptcy.
‘We firmly believe there is a strong and sustainable commercial market for UNI-SOLAR products,’ says Julian Hawkins, ECD's president and CEO. ‘The processes we initiated today will afford greater opportunity for ECD to maximize value for its stakeholders and conduct an orderly sale of USO to ensure it is viable and successful for the long run.’
The company has retained the investment banking firm Quarton Partners LLC to manage the sale process, which is expected to be completed in 90 days.
As of last December, the company had generated consolidated revenues of approximately $20 million and shipped approximately 11 MW of product, according to financial filings. However, it continued to operate at what it called ‘unsustainable levels,’ resulting in substantial losses and a continued decline in cash balances.