Private Investors to Get Preference over Taxpayers in Solyndra Assets Auction Proceeds

October 22 00:00 2011

New York, October 22 (RainbowNewsLine.com) – Defunct solar company Solyndra’s assets will be auctioned off as part of its bankruptcy proceedings from its California production facility on Nov.2 and 3 but the proceeds will not be available to the taxpayers. As per Energy department’s decision, Solyndra’s private financiers will get preference in repayment of their investments over taxpayers.

The Department of Energy has developed an unprecedented interpretation of the law that will enable Solyndra’s private investors to get hold of $75 million of their investment before taxpayers can lay their hands on a dime of the proceeds of the auction.

The auction will be conducted by Heritage Global Partners, who have confirmed that they don’t expect the money from the proceeds of the auction to be anywhere near $75 million, which means that the money raised will go entirely towards repaying Solyndra’s private investors. However, later asset sales might exceed that threshold.

Solyndra LLC, the solar panel maker that collapsed, had received a $535 million loan guarantee from the Energy Department in 2009. It had filed for bankruptcy protection on Sept. 6. It had even hired a Washington lobbying firm weeks before its bankruptcy in a last-ditch bid to sway U.S. lawmakers investigating the company.

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