Energy Conversion Devices gets court OK for soliciting votes on plan

By Jim Witters

Wilmington, Del., June 8 - Energy Conversion Devices, Inc. and United Solar Ovonic LLC received court approval for procedures for soliciting and tabulating votes for its proposed second amended joint Chapter 11 plan, according to documents filed June 7 with the U.S. Bankruptcy Court for the Eastern District of Michigan.

In issuing the ruling, judge Thomas J. Tucker denied motions by the official committee of unsecured creditors seeking to terminate the debtors' exclusive periods for filing a plan and soliciting votes and to temporarily adjourn voting on the proposed plan.

The creditors committee hopes to file its own plan of liquidation, according to court documents.

As previously reported, the debtors received preliminary court approval on May 31 for their disclosure statement.

A plan confirmation hearing is scheduled for noon ET on July 18.

Plan details

As previously reported, Energy Conversion Devices' secured claims of about $5 million attributable to United Solar will be eliminated on the plan effective date.

This claim results from an intercompany loan secured by property in which United Solar holds an interest.

"If the estates are substantively consolidated, this intercompany secured loan will be eliminated. If the estates are not substantively consolidated, the characterization of this intercompany secured loan may be litigated and, if allowed, will be paid prior to any other claims against USO," according to the disclosure statement.

Wieland-Davco Corp.'s secured claims of about $62,740 attributable to United Solar will receive cash in the amount of the claim or the collateral securing the claim.

This claim is secured by a lien on United Solar's Battle Creek, Mich., property.

Other creditor treatment

Under the proposed plan, treatment of other 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 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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