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Energy Conversion shareholders seek appointment of equity committee
By Jim Witters
Wilmington, Del., April 5 - The ad hoc shareholders' committee for Energy Conversion Devices, Inc. and United Solar Ovonic LLC is seeking the appointment of an official equity committee, according to documents filed Thursday with the U.S. Bankruptcy Court for the Eastern District of Michigan.
Energy Conversion shareholders Chris Lanwehr, Nick Pietrangelo, Patrick Vetere, George Voestch and Frank Williams asked for the committee.
"Despite the bankruptcy the debtors' estates hold substantial value for equity security holders," the motion states.
There currently is no one "willing or capable" to protect the equity interests, the motion states.
"The creditors and creditors' committee have no incentive or fiduciary responsibility to do so. Similarly, management has already negotiated agreements that align their interests with the unsecured creditors," the motion states.
The shareholders want equity security holders to have a voice in the potential sale of the companies' assets and the plan "to be filed in the very near term," the motion states.
The appointment of an official equity committee "would not add any great administrative expense," and "such costs would be negligible compared to the magnitude of losses and potential claims in issue and the overall assets and liabilities involved in these cases," the motion states.
The shareholders believe the debtors have overlooked several valuable assets, including non-debtor subsidiaries, intercompany claims, intellectual property and causes of action.
A hearing on the motion to appoint an equity committee is scheduled for noon ET on April 18.
Rochester Hills, Mich.-based Energy Conversion Devices makes thin-film flexible solar laminate products for buildings. The company filed for bankruptcy on Feb. 14 in the U.S. Bankruptcy Court for the Eastern District of Michigan under Chapter 11 case number 12-43166.
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