Adding Insult to Injury – Bankruptcy Judge OKs Plan that Could Allow Solyndra’s Investors to Recoup $341 Million in Tax Breaks
Investors with Close Ties to the President, Including Billionaire George Kaiser, Sought “Tax Avoidance” and Left Taxpayers Holding the Bag for Half a Billion Dollars
Responding to the news that a judge approved Solyndra’s plan to exit bankruptcy, Oversight and Investigations Subcommittee Chairman Cliff Stearns (R-FL) stated, “The Solyndra nightmare continues with today’s ruling that gives Solynda’s investors, including billionaire Obama supporter George Kaiser, the potential to recoup $341 million in tax breaks, adding further insult to injury for taxpayers. Solyndra’s investors could walk away with hundreds of millions of dollars in tax breaks even after the solar company’s bankruptcy cost taxpayers over half a billion dollars.”
Solyndra bankruptcy plan approved over government objections
October 22, 2012
WILMINGTON, Del (Reuters) - Solyndra, the failed solar panel maker, received court approval on Monday for its plan to repay creditors after a bankruptcy judge overruled objections by the U.S. government.
The government, which said it may appeal the ruling, had said the plan improperly provided $341 million in tax breaks to venture capital investors Argonaut Private Equity and Madrone Capital Partners.
In approving the company's proposal, U.S. Bankruptcy Judge Mary Walrath in Delaware said the government had failed to prove the primary purpose of the plan was to preserve tax benefits for the investors.
The U.S. government may decide to appeal, said Anne Oliver, an attorney for the Internal Revenue Service. At Oliver's request, Walrath delayed the repayment plan from going into effect for 10 days.
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