A Delaware bankruptcy judge has approved a bankruptcy exit plan for failed solar power company Solyndra LLC.
According to the Associated Press, under the bankruptcy plan, the Department of Energy stands to recover very little of a $528 million loan to Solyndra from the Obama administration. The AP reports that the federal government is “projected to recoup at most 19 percent on $142.8 million of the loan and probably nothing on the remaining $385 million.”
Solyndra filed for Chapter 11 bankruptcy last fall and laid off all of its employees, seeking to restructure. During its filing, Solyndra listed $854.1 million in assets and $867.1 million in debts. The Washington Post reports that the bankruptcy plan allows “two private equity funds that control Solyndra to potentially reap hundreds of millions of dollars in tax breaks after Solyndra emerges from bankruptcy, using the company’s net operating losses to offset future income.”
The Post reported that an appeal of the plan by the government is likely. Chapter 11 bankruptcies are common among businesses, as it allows them to remain in control of their operations while searching for investors or buyers.
Individuals struggling financially can file for Chapter 13 or Chapter 7 bankruptcy, which allows you to discharge debts like credit card debt and medical bills. If your financial situation is a problem, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.