Energy Conversion Devices, Inc. (OTC:ENERQ.PK) has announced it is cancelling the auction of the going concern sale of United Solar Ovonic scheduled for May 8, 2012. The companies are discontinuing the court-approved sale process because of the failure to receive an acceptable qualified bid by the bid deadline.
In connection with these activities, the companies will immediately begin reducing their workforce, terminating approximately 300 employees worldwide. The companies will retain a smaller workforce to support the bankruptcy process and the sale of its solar and other assets, including ECD's interest in Ovonyx, Inc. USO plans to retain a small number of employees to continue to develop its core solar technologies under government-funded contracts.
Quarton Partners, the companies' investment banker, is continuing to work with prospective buyers on alternative transactions. In addition, the companies have retained auction services provider Hilco Industrial to prepare for an orderly sale of the companies' assets.
ECD and USO voluntarily filed a petition for relief under Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Michigan on Feb. 14, 2012. United Solar Ovonic is based in Auburn Hills, Mich.
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