Bloomberg News

Solyndra Delays Business Auction Again for Lack of Good Bids

November 18, 2011

(Updates with excerpt from court filing in second paragraph)

Nov. 17 (Bloomberg) -- Solyndra LLC, the failed solar-panel maker under investigation over a $535 million government loan guarantee, delayed the auction of its business a second time, to Jan. 19, after failing to receive any acceptable bids.

“Parties continue to express interest in acquiring” the assets, the company said in court papers. “An extension of the dates and deadlines for the turnkey sale is necessary and appropriate,” to let potential buyers evaluate the business.

The company was set to hold the auction tomorrow, followed by a Nov. 22 hearing on approval of the sale. No satisfactory bids were submitted by yesterday’s deadline. The new deadline for offers is Jan. 17, with the auction two days later and, if there’s a sale, a hearing on approval Jan. 23.

Solyndra said it will also pursue an alternative auction process, to be run during the last week of January if it can’t obtain a bid for the turnkey auction, according to court documents. The company “believes that this ‘dual track’ process will maximize value,” it said.

Richard Pachulski, an attorney for Solyndra, and Eric Carlson, the company’s financial adviser, didn’t immediately reply to e-mails seeking comment on the auction process.

The solar-panel maker filed for Chapter 11 reorganization Sept. 6. It 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 President Barack Obama, who praised the company during a May 2010 tour of its facilities. The company faces a probe by 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, Charles Carter

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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