Energy Conversion Devices, United Solar Ovonic file liquidation plan

By Caroline Salls

Pittsburgh, May 23 - Energy Conversion Devices, Inc. and United Solar Ovonic LLC filed a plan of liquidation and related disclosure statement Wednesday with the U.S. Bankruptcy Court for the Eastern District of Michigan.

According to the disclosure statement, Energy Conversion and United Solar are in the process of selling their assets, and the debtors or a liquidation trustee will continue to sell any remaining assets under the plan and a liquidation trust agreement until all assets are fully liquidated or abandoned.

The liquidation trustee will distribute liquidation proceeds to creditors.

Treatment of creditors will include:

• Holders of administrative expense claims and priority tax claims will be paid in full in cash;

• Priority claims are expected to be paid in full in cash;

• Holders of secured claims will either be paid in full in cash or receive the title to the collateral securing the claims;

• Holders of general unsecured claims will receive all remaining estate assets after administrative, priority and secured claims have been paid in full and required assets have been transferred to a warranty trust;

• Holders of warranty claims will receive a beneficial interest in the warranty trust and any proceeds of distributions on account of that interest after administrative, priority and secured claims have been paid in full; and

• To the extent funds remain after payment in full of all claims, holders of equity interests will receive payment of any surplus.

Energy Conversion's equity interests in United Solar Ovonic will vest in Energy Conversion's liquidation trust.

Rochester Hills, Mich.-based Energy Conversion Devices makes thin-film flexible solar laminate products for buildings. The company filed for bankruptcy on Feb. 14 under Chapter 11 case number 12-43166.

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