Tuesday, February 14, 2012

Energy Conversion Devices ($ENER) Posts FAQ For Investors

FAQ is posted here.

Q. Why did you need to do this now and not in 2013 or when you run out of money?
A. The large amount of debt is crippling our business, preventing us from realizing our true potential. The company is burdened by costs incurred over the years which we are still paying for. While unfortunate, we cannot continue to operate in this state. Therefore, the decision was made in the best interest of the company in the hopes of creating a new, sustainable, financially stable entity. We’re looking for a fast turnaround to better the chances we have of success.

Q. Will my common stock be worth anything in the future?
A. Based upon the estimated value of the Company’s assets and forecasted costs and operating losses during the Chapter 11 process, the Company does not expect to generate proceeds sufficient to satisfy all of the Company’s pre-existing obligations to its creditors. Accordingly, unless the Company realizes greater-than-expected value from the sales process, the Company expects that no distributions will be made to holders of common stock and the common stock will be extinguished upon confirmation of the Chapter 11 plan.


Jason said...

Well played. Didn't get a chance to get a position on, but still enjoyed the commentary.

CP said...


Photovoltaic solar sure has been exciting.