Solyndra Lien Fight Must Stay in Delaware, Judge Says

Law360, Wilmington (June 20, 2013, 3:11 PM EDT) -- A Delaware bankruptcy judge denied a request Thursday from a Solyndra LLC creditor to transfer to California a lien dispute connected to the company's sprawling headquarters, ruling that the issue is still a core proceeding and should be decided in the First State.

U.S. Bankruptcy Judge Mary F. Walrath said that the bankruptcy court has "quintessential core jurisdiction" over claims, and arguments that the Solyndra estate had no real interest in the lien dispute didn't fly with her.

"The administration of the estate includes the disbursement of claims, so this does have a significant effect," Judge Walrath said in court. "The...

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