Bloomberg News

Solyndra Creditors Seek Delay in Sale of Solar-Panel Maker

September 26, 2011

(Updates with excerpt from court filing in third paragraph.)

Sept. 26 (Bloomberg) -- Low-ranking creditors of Solyndra LLC asked a judge to delay an auction for the bankrupt solar- panel maker, claiming a quick sale may push down the price.

A committee representing unsecured creditors owed about $40 million asked U.S. Bankruptcy Judge Mary Walrath to delay the deadline by at least four weeks, to the end of November, for potential buyers to submit bids to buy the company.

“Without sufficient opportunity to complete due diligence, a prospective buyer is likely to undervalue the assets,” the committee said in court papers filed Sept. 23 in Wilmington, Delaware. The committee blamed a rush to sell the company on “forces outside the Chapter 11 process.”

The company is under investigation by Republicans in Congress, who have criticized the $535 million federal loan guarantee that helped pay for the nine-month-old factory, which opened in January.

After the company fired about 1,100 workers on Aug. 31 and filed for bankruptcy, the Federal Bureau of Investigation searched its Fremont, California, headquarters.

The case is In re Solyndra LLC 11-12799, U.S. Bankruptcy Court, District of Delaware (Wilmington).

--Editors: Peter Blumberg, Steve Farr

To contact the reporter on this story: Steven Church in Wilmington at schurch3@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net


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