Bankruptcy judge clears way for Solyndra plan vote

AP News
Posted: Sep 07, 2012 12:25 PM
Bankruptcy judge clears way for Solyndra plan vote

WILMINGTON, Del. (AP) — A Delaware bankruptcy judge has cleared the way for creditors to vote on Solyndra LLC's reorganization plan.

The judge on Friday approved Solyndra's explanation of its plan, under which the federal government stands to recover little, if any, of the $528 million loan the solar power company received from the Obama administration before seeking bankruptcy protection last year.

Fremont, Calif.-based Solyndra revised its disclosure statement after the Department of Energy and Internal Revenue Service demanded more information about tax breaks potentially worth hundreds of millions of dollars to two private equity funds that control Solyndra.

A hearing on whether to confirm the plan itself is set for Oct. 17.

The IRS plans to argue that a reorganization plan can't be approved if its principal purpose is tax avoidance.