IRS Says Solyndra's Ch. 11 Plan Is Ploy To Skirt Taxes

Law360, Wilmington (October 10, 2012, 6:30 PM EDT) -- The Internal Revenue Service moved to derail Solyndra LLC's bankruptcy plan on Wednesday, claiming the plan cannot be approved because its “principal purpose” is to help the defunct solar company's private equity owners avoid paying taxes.

While Solyndra is liquidating, the plan preserves its parent as an “empty shell” corporation that only exists so investors Argonaut Ventures I LLC and Madrone Partners LP, which also sponsored the plan, can utilize some $350 million in tax breaks accrued by the failed company, the IRS said in an...
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