Thin-film solar laminates maker Energy Conversion Devices Inc. (ENER) filed for bankruptcy protection on Tuesday, joining a slew of solar technology companies that have faltered amid a industry downturn.
The Auburn Hills, Michigan-based company said it voluntarily filed a petition for relief under Chapter 11 in the U.S. Bankruptcy Court for the Eastern District of Michigan.
Energy Conversion also said it plans to sell its wholly owned operating subsidiary United Solar Ovonic LLC and other assets, including its about 39% stake in Ovonyx, Inc., as part of the bankruptcy plan.
The company said holders of about 70% of its $263.2 million in outstanding 3% convertible senior notes due 2013 supported its proposed operating and sales plan.
Energy Conversion shares are currently trading at $0.28, down $1.18 or 80.85%.United Solar, which manufactures flexible, lightweight thin-film photovoltaic products for use in the commercial rooftop and building-integrated markets, will continue to operate during the sale process that is expected to be completed in 90 days.
Energy Conversion's bankruptcy filing comes a day after the company sold its majority owned subsidiary, Ovonic Battery Company, Inc., to BASF Corp. for $58 million in cash. Energy Conversion had initiated the sales process of Ovonic Battery, the inventor and worldwide licensor of nickel-metal hydride rechargeable battery technology, in July.
Energy Conversion said Tuesday that it generated revenues of about $20 million and shipped about 11 megawatts in the quarter ended December 31.
The company said it continued to operate at unsustainable levels, resulting in substantial losses and a continued decline in cash balances. The company was forced to cut 500 jobs and halt manufacturing operations late last year, resulting in furlough of about 400 employees.
Among major solar companies, Evergreen Solar Inc, Solyndra and SpectraWatt have earlier filed for Chapter 11 bankruptcy protection.
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