Energy Conversion Devices, Inc. (“ECD”) (OTC: ENERQ.PK), a leader in materials science and renewable energy technologies, and its wholly-owned subsidiary United Solar Ovonic LLC (“USO”) announced that they are cancelling the auction of the going concern sale of USO scheduled for May 8, 2012 and discontinuing the court-approved sale process because of the failure to receive an acceptable qualified bid 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.
“Today’s announcement is one that everyone here at ECD and UNI-SOLAR worked extremely hard to avoid,” said Julian Hawkins, ECD’s President and CEO. “On behalf of the management team and the board, I wish to express the sincere thanks to past and present members of the ECD/UNI-SOLAR team for their dedication, commitment and passion. Each one of you has played an integral role in forever changing the world of clean energy.”
In connection with these activities, the companies will immediately begin reducing their workforce, terminating approximately 300 employees worldwide. The companies will 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 February 14, 2012.
