Energy Conversion Devices: Discussions With Noteholders
Energy Conversion Devices, Inc. (ECD), a leading global provider of lightweight, flexible solar products and systems for the building-integrated and commercial rooftop markets, today provided an update on its ongoing discussions with certain holders of its Senior Convertible Notes due 2013 (Notes) and their representatives.
"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," said Jay Knoll, ECD's Chief Restructuring Officer. "We are continuing to pursue a repositioning of our solar business for future success."
In light of these ongoing discussions, ECD has elected to defer payment of the interest due tomorrow, December 15, under the Notes. The indenture governing the Notes provides the company a 30-day grace period to make the interest payment, during which ECD expects to continue discussions with the noteholder group. ECD is not currently experiencing significant liquidity constraints, but as stated previously, the company believes that a successful repositioning of its solar business will require additional investment and a restructuring or refinancing of its outstanding Notes.
Over the past three quarters, ECD has undergone a strategic corporate restructuring involving significant leadership changes, staffing and fixed cost reductions and a repositioning of its corporate strategy. This restructuring program calls on the company to broaden its geographic reach and to expand its addressable markets with new product launches and through its Open Solar™ initiative. The company is also focused on increasing the sunlight-to-electricity conversion efficiency of its products to improve marketability and reduce production costs. In addition, as part of its decision to focus on its solar business, the company is in the process of divesting its Ovonic Battery Company subsidiary.
About Energy Conversion Devices
Energy Conversion Devices (ECD) (Nasdaq:ENER) has a renowned 51 year history since its formation in Detroit, Michigan and has been a pioneer in materials science and renewable energy technology development. The company has been awarded over 500 U.S. patents and international counterparts for its achievements. ECD's United Solar wholly owned subsidiary has been a global leader in building-integrated and rooftop photovoltaics for over 25 years. The company manufactures, sells and installs thin-film solar laminates that convert sunlight to clean, renewable energy using proprietary technology. UNI-SOLAR® brand products are unique because of their flexibility, light weight, ease of installation, durability, and real-world energy production. ECD's technology portfolio also includes the Ovonic Battery Company, the inventor and worldwide licensor of nickel-metal-hydride battery technology and the developer of proprietary advanced lithium-ion cathode materials, along with other emerging energy storage technologies. ECD's Ovonyx joint venture is the inventor and worldwide licensor of phase change memory (PCM) technology. For more information, please visit ECD on the web at energyconversiondevices.com and on Facebook, and follow ECD on Twitter @ECD_ENER.
Safe Harbor Statement
This release may contain forward-looking statements within the meaning of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not constitute guarantees of future performance. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future net sales or performance, capital expenditures, financing needs, restructuring, plans or intentions relating to expansions, business trends and other information that is not historical information. All forward-looking statements are based upon information available to us on the date of this release and are subject to risks, uncertainties and other factors, many of which are outside of our control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Risks that could cause such results to differ include: our ability to maintain our customer relationships and establish new relationships; the worldwide market for solar energy systems; changes to government incentives related to solar energy; our customers' ability to access capital to finance the purchase of our products; our ability to achieve expense reductions and levels of one-time costs, including restructuring charges; our ability to meet all the terms and conditions of our debt obligations; and our ability through technology improvements to reduce cost and improve the conversion efficiency of our solar products. The risk factors identified in the ECD filings with the Securities and Exchange Commission, including the company's most recent Annual Report on Form 10-K and most recent Quarterly Report on Form 10-Q, could impact any forward-looking statements contained in this release. Except as required by law, Energy Conversion Devices, Inc. assumes no responsibility to update any forward-looking statements contained herein.
CONTACT: Michael E. Schostak
Director of Business Development & Communications
Energy Conversion Devices, Inc.
+1 (248) 299-6063