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 team performed process value analysis; assessed the Company's products, markets and customers; and enhanced the performance management process. As a result of an overall business assessment, the team determined current operating cash requirements would not be sufficient to satisfy current obligations. The team determined the future success of the business given its cash position and research and development needs was in the hands of a strategic buyer.

Results

The Bridge team arranged for the filing of bankruptcy. The team also made improvements significant enough to forgo debtor-in-possession financing. As a result, domestic operating assets were sold to General Electric for approximately $20 million and European assets were sold for approximately $4 million. These sales generated sufficient cash flow to satisfy all secured debt and return a substantial amount to priority and unsecured creditors. Subsequent to the sale, Bridge has continued to assist in winding down the remaining business affairs of the estate including reconciling approximately $36 million of filed claims and $15 million of potential preference actions.