By Garima Goel
Nov 1 (Reuters) - The U.S. Internal Revenue Service on
Thursday appealed a court decision to approve solar panel maker
Solyndra's plan to exit bankruptcy protection.
Solyndra, which filed for bankruptcy in September last year
despite a $528 million federal loan, won court approval on Oct.
22 to repay its creditors after a judge overruled objections by
the U.S. government.
U.S. Bankruptcy Judge Mary Walrath in Delaware had rejected
the government argument that the plan was improper because its
main purpose was to provide tax breaks.
Venture capital firms Argonaut Private Equity and Madrone
Capital Partners will control Solyndra's tax breaks, known as
net operating losses or NOLs, that are potentially worth $341
million after the bankruptcy.
The Internal Revenue Service had told the judge that the
government might appeal and requested Judge Walrath to delay the
repayment plan by 10 days.
The case is In re: Solyndra LLC et al, U.S. Bankruptcy
Court, District of Delaware, No. 11-12799.
Follow us on Twitter @ReutersLegal | Like us on Facebook