Energy Conversion Devices, Inc. - "363 Sale" of Solar Business Unit

From my colleagues Erin Eliasen and David Levant:

Energy Conversion Devices, Inc. (“ECD”) and its subsidiary United Solar Ovonic LLC (“USO” and together with ECD, the “Debtors”), which manufacture lightweight, flexible PVs, have filed for chapter 11 bankruptcy and seek to sell USO’s solar business unit pursuant to section 363 of the Bankruptcy Code.

The Debtors seek qualified bidders for the purchase of USO’s stock or assets that comprise its solar business unit (the “Assets”). The deadline to submit “qualified bids” for the Assets is April 17, 2012. To be a “qualified bidder” a party must (i) execute a confidentiality agreement; (ii) provide a statement “demonstrating a bona fide interest” in the assets to be purchased and listing a “non-binding” range of value for such assets; and (iii) demonstrate proof of financial wherewithal to purchase the assets. If multiple qualified bids are received, an auction will be held on April 24, 2012. At present there is no “stalking horse bidder”, but if one comes forward and is overbid, the Bankruptcy Court has approved the payment to the stalking horse bidder of the lesser of a “break-up fee” of 2.0% of the purchase price or expense reimbursement up to $200,000. All purchases are subject to approval by the Bankruptcy Court.

This proposed sale is unusual in that it does not have a minimum bid requirement and there is no proposed stalking horse bidder. These factors may indicate an opportunity to obtain PVs and other of USO’s assets at a discount.

If you are interested in purchasing all or any of the Assets, please contact Erin Eliasen at (206) 386-7605 or David Levant at (206) 386-7601.