Ex-Solyndra Workers Blast Releases For Secured Creditors

Law360, Wilmington (February 1, 2012, 9:16 PM EST) -- A proposed class of former Solyndra LLC employees asked a Delaware bankruptcy court on Tuesday to prevent the defunct solar panel maker from granting its secured lenders protection from potential lawsuits.

In a motion to strike release provisions contained in Solyndra’s bankruptcy loan agreement, the class representative, Peter Kohlstadt, said these “gratuitous releases” may foreclose valuable avoidance actions against the company’s secured creditors.

“The broad definitional scheme built into the releases may result in a ‘gotcha’ moment. That is, when a party is sued on an...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.