Tuesday, October 23, 2012
Solyndra Exit Plan Solidified
Despite objections from the US Department of Energy, the Office of the US Trustee and the IRS, a bankruptcy judge confirmed a Chapter 11 bankruptcy plan for defunct solar-panel company Solyndra yesterday.
Solyndra went under last year after taking more than $1 billion in private loans and $527 million in taxpayer money from federal loans.
The IRS believes the bankruptcy plan is only a way for the investors in Solyndra's parent company to avoid taxes. Yesterday, bankruptcy judge Mary Walrath rejected that claim.
Chapter 11 generally lets companies stay open while repaying their debts. In this case, Solyndra will be liquidated. Experts are saying the US Government probably won't get any of the taxpayers' money back.
In the summer of August, 2011, Solyndra closed down and fired 1,100 employees. Those employees must split a $3.5 million settlement, which was offered because the employees were not given prior notice of their termination.
If you are facing insurmountable debt and want to learn more about bankruptcy, please contact an experienced bankruptcy lawyer in your area.