Solyndra close to filing Chapter 11 plan with court
By Staff Reports on Jun 16, 2012, at 2:27 AM Updated on 6/16/12 at 4:35 AM
WILMINGTON, Del. (AP) - A California-based solar panel manufacturer that received a half-billion dollar loan from the federal government before filing for bankruptcy protection is close to filing a proposal for what to do next.
An attorney for Solyndra LLC told a Delaware judge Friday that he expects to file a Chapter 11 bankruptcy plan in the next few weeks, and that Solyndra has reached an agreement in principle with a majority of its major creditors.
Solyndra has failed to find a buyer to operate the company and is liquidating its assets.
In the meantime, the company is seeking court approval to borrow an additional $3 million and to extend its bankruptcy financing agreement through September as it works with landlords and other parties to dismantle and sell equipment and dispose of real estate.
The Energy Department signed off on the terms of a $528 million loan to Solyndra Inc. It was the first renewable-energy company to receive backing from a loan program created by the stimulus bill. But last year, Solyndra declared bankruptcy and laid off more than 1,000 people.
Tulsa billionaire George Kaiser invested $400 million in the solar company through an investment vehicle connected to his George Kaiser Family foundation. Kaiser has said he had no part in helping Solyndra win the government loan.
Tulsa World staff contributed to this story.
Original Print Headline: Solyndra nears filing Chapter 11 plan
