Energy Conversion and United Solar joint liquidation plan confirmed

By Caroline Salls

Pittsburgh, July 30 - Energy Conversion Devices, Inc. and United Solar Ovonic LLC's second amended joint plan of liquidation was confirmed Monday by the U.S. Bankruptcy Court for the Eastern District of Michigan.

The disclosure statement for the plan was also approved as part of Monday's order.

According to the disclosure statement, the debtors are in the process of selling their assets, and the debtors or a liquidating trustee will continue to sell any remaining assets until all assets are fully liquidated or abandoned.

The plan calls for initial distributions, followed by the funding of a warranty trust and the vesting of all remaining assets of in the liquidation trust.

Under the plan, treatment of creditors will include the following:

• 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 Wieland-Davco Corp. secured claims will either be paid in full or receive the collateral securing their 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 either cash or inventory, at the liquidating trustee's election, 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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