Bloomberg News

Solyndra to Add Tax-Break Information to Exit Plan

September 05, 2012

Solyndra LLC, the bankrupt solar- panel maker, will add information on potential tax breaks for the company’s indirect owners to its reorganization plan to resolve an objection from the U.S. government.

Net operating loss carryforwards may reach $975 million for Solyndra’s parent, 360 Degree Solar Holdings Inc., according to court papers filed yesterday in Wilmington, Delaware. The NOLs may generate more than $300 million in tax breaks for 360 Degree’s equity owners, including Argonaut Ventures LLC and Madrone Partners LP, Solyndra said.

Solyndra, based in Fremont, California, said in court papers it will add a section to its restructuring plan disclosing the estimates and saying 360 Degree “would be entitled under the plan to use its existing net operating loss carryforwards in future years to eliminate taxes on a corresponding amount of its income, subject to any applicable limitations.”

360 Degree’s investors will inject capital into the reorganized company, which “would benefit from a reduction in federal income tax liability of $306 million to $341 million,” if it can generate income, Solyndra said in court papers.

The solar-panel maker filed a reorganization plan in July under which the U.S. might get little to nothing for its $528 million claim from an Energy Department loan guarantee. The government was projected to recoup at most 17 percent on the $142.8 million portion of the loan and possibly nothing on the $385 million portion.

Loan Guarantee

Solyndra’s collapse prompted congressional scrutiny of President Barack Obama, who praised the company during a May 2010 tour of its facilities. It was the first company to receive a loan guarantee under Obama’s stimulus.

Argonaut Ventures, the investment arm of billionaire and Obama fundraiser George Kaiser’s charitable organization, holds almost 39 percent of Solyndra’s parent.

Solyndra listed about $854.1 million in assets and about $867.1 million in debt in court papers filed Oct. 31. It was raided by the U.S. Federal Bureau of Investigation two days after seeking bankruptcy protection Sept. 6.

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

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

To contact the editor responsible for this story: Stephen Farr at sfarr@bloomberg.net


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