Plextronics announced it filed a voluntary petition under Chapter 11 in U.S. Bankruptcy Court for the District of Delaware. The company also filed a motion seeking authorization to pursue a sale process under §363 of the U.S. Bankruptcy Code. To this end, Plextronics entered into an acquisition agreement with Solvay America as a stalking horse bidder, which it submitted to the bankruptcy court on January 16, 2013.

Campbell & Levine is serving as the Plextronics’ legal advisors, and Cowen and Company is serving as its investment banker.

Under the proposed agreement, Solvay will acquire substantially all of the assets of Plextronics. This agreement contemplates a bankruptcy court-supervised auction process, designed to achieve the highest or best offer for Plextronics’ assets. It sets the floor, or minimum acceptable bid, and is subject to bankruptcy court approval and certain other conditions.

“The Board and management team have conducted a rigorous assessment of all of our strategic options and concluded that this process represents the best possible solution for Plextronics to help unlock the value of Plexcore inks,” said Richard McCullough, chairman of the board of Plextronics. “We are committed to an outcome that maximizes value and allows Plexcore to remain commercially available to all customers. Further, we are thankful to our dedicated employees who continue to work vigorously to develop and provide Plexcore materials to all customers throughout this process.”

The proposed bidding procedures, if approved by the bankruptcy court, would require interested parties to submit binding offers to acquire Plextronics’ assets by February 28, 2014. Such parties could include strategic and financial bidders. Assuming qualified bids are submitted, an auction would then be held. A final sale approval hearing is anticipated to take place shortly after the auction with the anticipated closing to occur by the end of March 2014.

Plextronics has filed a series of customary motions seeking to ensure the continuation of normal operations during this process. It secured financing during the sales process to ensure that it has sufficient liquidity to conduct its business uninterrupted.

Pittsburgh-based Plextronics is a global technology company specializing in conductive polymers and printable formulations that enable advanced electronic devices.