Bloomberg News

Solyndra Gets $6.2 Million From Auction of Non-Core Assets

November 09, 2011

(Updates with prices in third paragraph.)

Nov. 7 (Bloomberg) -- Solyndra LLC, the bankrupt solar- panel maker under investigation over a $535 million loan guarantee from the U.S. government, collected $6.2 million from a two-day auction of non-core assets.

The company sold items that aren’t essential to its operation, from spare equipment and solar panels to memorabilia such as banners and shirts emblazoned with Solyndra’s logo. More than 3,900 bidders registered for the auction, which was held at its headquarters in Fremont, California, as well as online, according to court papers.

A scanning electron microscope purchased by Earl Weltmer of Scanservice Corp. fetched the highest price, going for $255,000, according to court documents. Some items, such as Dell Inc. computer monitors, sold for as little as $50.

Solyndra has yet to secure an offer from anyone willing to act as lead bidder at an auction of its business, according to court filings. The company plans to hold that auction on Nov. 18, followed by a Nov. 22 court hearing to seek approval of the sale. Potential buyers have until Nov. 16 to bid.

The solar-panel maker filed for Chapter 11 reorganization on Sept. 6 and was raided two days later by the Federal Bureau of Investigation. Solyndra listed about $854.1 million in assets and about $867.1 million in debt in court papers filed Oct. 31.

Solyndra’s collapse prompted congressional scrutiny of U.S. President Barack Obama, who praised the company during a May 2010 tour of its facilities. The company faces probes by the FBI and Republicans in Congress over the federal loan guarantee it used to build a $733 million factory.

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

--Editors: Stephen Farr, Mary Romano

To contact the reporter on this story: Michael Bathon in Wilmington, Delaware, at mbathon@bloomberg.net.

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


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