USO parent company ECD’s second amended joint plan of liquidation has been confirmed by the court. The confirmation order is expected to be finalised on August, 14 assuming no appeals of the order before that time. The plan will then be effective.
The plan proposed received overwhelming support from the voting creditors and is seen as a significant advancement of the company’s efforts to maximise the return to its creditors through an efficient administration of its bankruptcy cases. The plan allows for the treatment of claims against ECD and USO and equity interests in ECD.
The companies have also completed the sales of their machinery, equipment and inventory, and are in the process of selling their intellectual property, real estate holdings, interest in Ovonyx and other assets. The plan stipulates a liquidation trust to complete the liquidation, wind up ECD and USO affairs and thereafter distribute the cash to creditors of each company on a consolidated basis.
A warranty trust has also been established to settle claims. Both liquidation and warranty trusts will be managed by an oversight committee comprised of selected unsecured creditors. On the effective date of the plan, all equity interests in ECD will be cancelled.
On February 14, 2012, ECD and its subsidiaries, USO and Solar Integrated Technologies, Inc. (SIT) filed for bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Michigan. 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.