The bankruptcy attorney for the solar panel maker Solyndra is planning on asking the bankruptcy court on Tuesday for permission to hire additional attorneys, needed for an ongoing federal investigation against the company, by auctioning off some of its assets. Currently, there is a federal investigation into the $535 million government-backed loan guarantee that the taxpayers are in danger of losing due to the bankruptcy filing. Solyndra will now ask the bankruptcy court approval to be allowed to hold an auction on October 28 to liquidate some of its assets. Representatives from the company have stated that after closing they would look to try and find a buyer to reopen the Fremont, California plant. As of this time, the company has not identified any bidders for the assets. Interested bidders have until October 25 to submit their bids.
The landlord for the Solyndra Fremont plant, iStar has asked the bankruptcy judge that his ruling over the bankruptcy filing to set some kind of deadline for Solyndra to name any bidders that would like to try to take over the company’s seven year, $129,000 a month lease. The representatives of iStar had stated that under the auction that was proposed by Solyndra, iStar won’t know what a bidder plans to do with the property until just before the sale hearing. This would not give them any time to decide whether or not it would object to the proposed buyer. Although, Solyndra doesn’t have any initial bidders, the company said in bankruptcy court earlier in the month that it might have a few interested parties in reopening their factory.
This bankruptcy is expected to have a lot of press due to the investigation by the Republicans in Congress. It’ll be interesting to see how this highly touted green company will fare after filing bankruptcy and what will happen with their ensuing investigation.