Bankrupt solar power company Solyndra LLC is asking a bankruptcy judge to confirm its proposed reorganization plan over objections from government attorneys, the Associated Press reported yesterday. Solyndra lawyers said yesterday in court documents that the plan meets legal requirements for confirmation. Lawyers also addressed and rejected Internal Revenue Service and Department of Energy objections. The IRS had previously said in court documents that the plan's principal purpose is tax avoidance. The Department of Energy, which loaned Solyndra $528 million, claimed that the plan fails to protect DOE's $30 million interest in pre-bankruptcy collateral. The plan allows for two private equity funds that control Solyndra to potentially reap hundreds of millions of dollars in tax breaks after Solyndra emerges from bankruptcy, using net operating losses. The hearing on the plan is set for tomorrow.
