AstroPower, Inc.

Client

AstroPower, Inc. was a leading manufacturer and international distributor of solar power cells, components and systems, with annual revenues of $60 million. Prior to bankruptcy, AstroPower was traded on NASDAQ and operated worldwide, including a wholly owned operating company in Spain, serving the European Common market.

Challenge

The Company discovered a substantial financial reporting misstatement which led to the departure of high level executives. The Company also faced a severe liquidity crisis caused by historical operating losses and significant research and development spending.

Solution

Bridge provided a Crisis Management Team, including an Interim CEO and CFO. The Bridge team stabilized the operations of the business; managed the cash flow of the business to work within the constraints of its available cash under a bank forbearance agreement; took actions to correct the financial statements to reflect the proper valuation of the assets; analyzed the business to identify opportunities for potential buyers, and conducted a Section 363 sale in the Bankruptcy Court.

Results

The Company’s domestic assets were sold to GE Energy and the Spanish assets were sold to Elecnor. The sale generated sufficient cash flow to satisfy 100 percent of the secured and priority debt. Bridge provided post-confirmation trust management service, including acting as Trustee, and working with counsel initiated avoidance and other recovery actions including litigation against numerous parties resulting in a 50% recovery for unsecured creditors from the sale proceeds, the avoidance actions and litigation.