Bankruptcy Court Confirms Liquidation Plan For ECD And United Solar
AUBURN HILLS — Energy Conversion Devices Inc. (OTC: ENERQ.PK) and its subsidiary United Solar Ovonic LLC last week announced that the United States Bankruptcy Court for the Eastern District of Michigan has confirmed its Second Amended Joint Plan of Liquidation.
The confirmation order is expected to become final Aug. 14, assuming no appeals of the order before that time, at which time, the plan will be effective.
The plan obtained overwhelming support from all classes of voting creditors. It 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 to 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 comprised of selected unsecured creditors. On the effective date of the plan, all equity interests in ECD will be cancelled.
On Feb. 14, ECD and USO filed voluntary petitions for relief under Chapter 11 the United States Bankruptcy Code in the United States Bankruptcy Court for the Eastern District of Michigan. On May 23, ECD and USO filed a proposed plan of liquidation and disclosure statement with the Bankruptcy Court, both the proposed plan and disclosure statement were later amended and filed with the Bankruptcy Court on May 29 and May 31.
ECD and USO were represented by Honigman Miller Schwartz and Cohn LLP in the chapter 11 cases and their financial advisor was AlixPartners LLP.
Additional information regarding the bankruptcy proceedings is available at www.energyconversiondevices.com/restructuring.php.