With approximately US$148 million in cash and investments, coupled with current assets valued at just over US$1.03 billion but debts of equivalent value, Chapter 11 refugee, Energy Conversion Devices is therefore primed for takeover or asset strip. Investment firm Salamon Group is the first to officially make a move in a tender offer for the company, though the deal would seem far removed from ECD management's goals of restructuring under Chapter 11.
Salamon Group is offering 5 million of its own shares to purchase all outstanding shares in ECD. The investment firm is initially appealing to shareholders to support the move.
“A bank of loss-carry forwards is a valuable asset, if they are acquired for the right price,” noted Michael Matvieshen, CEO of Salamon Group. “Energy Conversion shareholders are currently set to receive nothing but a total loss because of the Chapter 11 filing. The current Energy Conversion shareholders position based on the Chapter 11 disposition of assets receive nothing. Our offer allows shareholders of ENERQ to have an opportunity to recover value that they would not be able to with their current holdings because of the Chapter 11 filing.”
At time of posting, ECD has yet to publically respond to move.
Another thin film specialist in receivership, Odersun has so far been unable to find interested parties willing to takeover the company, according to the administrator. The company has relinquished its plan for ‘self-administration’ as a result.
The company has until the end of May to find a buyer as wages and salary payments have been secured through to the end of the month. The company employs approximately 260 people.
Helianthos, another developer of thin film technology has also lucked out, according to Dutch newspaper reports. The auction of its assets failed to find a buyer and a second auction is planned for early May, 2012.