in News Departments > New & Noteworthy
print the content item

comments: 5

Failed thin-film PV manufacturer Solyndra has received approval from a bankruptcy judge in Delaware to implement its plan to exit court protection and liquidate the business.

Approval was granted despite objections raised by the U.S. Internal Revenue Service (IRS). According to Bloomberg, the IRS had argued that Solyndra's plan allowed the parent company, 360 Degree Solar Holdings Inc., to escape with tax breaks of up to $341 million. 360 Degree Solar will be allowed to use net operating loss carry-forwards totaling up to $975 million against future income.

U.S. Bankruptcy Judge Mary Walrath, however, rejected the IRS' challenge, noting that  tax avoidance was not the "primary" purpose of Solyndra's plan, as submitted.

Solyndra is best known for its $535 million loan guarantee from the U.S. Department of Energy, which was thoroughly investigated by lawmakers after the company went bankrupt last year. The U.S. government is expected to recover little of its investment under Solyndra's bankruptcy plan, according to Bloomberg.

The U.S. House of Representatives' Oversight and Investigations Subcommittee Chairman Cliff Stearns, R-Fla., who spearheaded the Solyndra loan guarantee investigations, described the newly approved bankruptcy plan as "insult to injury."

"The Solyndra nightmare continues with today's ruling that gives Solynda's investors, including billionaire Obama supporter George Kaiser, the potential to recoup $341million in tax breaks, adding further insult to injury for taxpayers," Stearns said in a statement. "Solyndra's investors could walk away with hundreds of millions of dollars in tax breaks even after the solar company's bankruptcy cost taxpayers over half a billion dollars."

Stearns adds that a lawyer for the IRS has said that the agency may appeal the plan.




Hybrid Energy Innovations 2015

ModSolar_B_id1435
Latest Top Stories

Hawaii Hopes Storage Will Enable A 'Multi-Directional' Grid For Solar

Hawaii's public utilities have submitted controversial plans for enabling increased penetration of solar while supporting grid reliability. Planners hope a large-scale energy storage program will help reconcile day-peaking output with night-peaking demand.


NCSEA Working To Create A Solar Powerhouse In North Carolina

The North Carolina Sustainable Energy Association (NCSEA) says the importance of solar power in a diversified generation portfolio helps build broad support for clean energy policy.


Minnesota PUC Green-Lights Xcel's Community Solar Gardens Program

While the countdown for the program has started, the value of solar (VOS) tariff once envisioned for it has downshifted onto a parallel track. However, a revised VOS is expected to come into play next year.


Solar Capacity Increases Sharply At U.S. Schools

A new study shows that solar power for K-12 schools is a hot market with plenty of room for future growth.


SolarCity Strikes An East-West Pose In Its New Commercial Mounting System

The first major new product release from SolarCity's Zep Solar business unit since last year's merger reveals new opportunities in the commercial solar space.

CanSolIndus_id1429
Liquidity_id1432
Heilind_id1430
PVcobra_id1394
Future Energy_id1428
Maynards_id1436
Ingeteam_id1433