A few months ago we wrote that “It is difficult to envision ECD surviving much longer as an independent public entity.”
Today, Energy Conversion Devices (Nasdaq:ENER), a long-struggling supplier of flexible amorphous silicon (a-Si) photovoltaic laminates and building-integrated photovoltaics (BIPV), dropped the bad news.
The firm filed for Chapter 11 protection in U.S. Bankruptcy Court, unable to negotiate a deal with its convertible bondholders, according to Michael E. Schostak, director of business development at Energy Conversion Devices, quoted in the WSJ.
With its typical level of denial, the firm’s press release said that “ECD took these actions to facilitate a sale of the USO business in a manner that enables USO to be competitive and viable for the long-run. During the bankruptcy and sale process, USO will continue to operate and serve its customers while moving forward on its development of advanced nano-crystalline silicon photovoltaics.”
Late last year ECD had entered a “Restructuring Plan,” stating that ECD’s high inventory levels were forcing a “suspension of company’s manufacturing operations,” the company reported that it is holding “discussions with representatives of certain holders of [the] company’s outstanding convertible notes” amidst “the postponement of the scheduled quarterly financial results conference call.”