Published November 01, 2012
The U.S. Internal Revenue Service on Thursday appealed a court decision to approve solar panel maker Solyndra's plan to exit bankruptcy protection.
Solyndra, which filed for bankruptcy in September last year despite a $528 million federal loan, won court approval on October 22 to repay its creditors after a judge overruled objections by the U.S. government.
U.S. Bankruptcy Judge Mary Walrath in Delaware had rejected the government argument that the plan was improper because its main purpose was to provide tax breaks.
Venture capital firms Argonaut Private Equity and Madrone Capital Partners will control Solyndra's tax breaks, known as net operating losses or NOLs, that are potentially worth $341 million after the bankruptcy.
The Internal Revenue Service had told the judge that the government might appeal and requested Judge Walrath to delay the repayment plan by 10 days.
The case is In re: Solyndra LLC et al, U.S. Bankruptcy Court, District of Delaware, No. 11-12799.
(Reporting By Garima Goel in Bangalore; Editing by Ken Wills)