Troubled thin-film veteran, Energy Conversion Devices, has deferred interest payments to holders of its Senior Convertible Notes, due 2013, as it continues talks with some of the holders over restructuring debt and raising funds to continue operations.
According to ECD it has an indenture provision that provides the company a 30-day grace period to make the interest payment. The company had over US$100 million in cash and short-term investments at the end of the third quarter of 2011, so the likelihood of any default is unlikely.
“We are working cooperatively with the informal noteholders group and continue to have meaningful and productive discussions regarding ECD's capital structure and future growth needs,” commented Jay Knoll, ECD's chief restructuring officer. “We are continuing to pursue a repositioning of our solar business for future success.”
ECD recently shuttered manufacturing facilities to conserve cash and reduce inventory build. The company also faces delisting from the NASDAQ stock market in the first quarter of 2012.