Solyndra Says Ch. 7 Looms Without $3M Extra DIP Financing

Law360, Wilmington (May 14, 2012, 4:06 PM EDT) -- Bankrupt solar panel maker Solyndra LLC on Friday asked a Delaware judge to approve $3 million in additional debtor-in-possession financing and an extension of the loan facility, saying it will have to convert to Chapter 7 bankruptcy if the motion is not approved.

Solyndra's motion seeks approval from U.S. Bankruptcy Judge Mary F. Walrath to increase the available DIP funding from $4 million to $7 million and extend the facility's cut-off date from June 2 to Sept. 29.

The California-based company is continuing with the sale...
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