Solyndra LLC, the bankrupt solar-panel maker, shouldn’t be allowed to hold an auction for its shuttered production facilities until it names the bidders, the company’s landlord said in court papers.
The landlord, iStar CTL I, LP, asked U.S. Bankruptcy Judge Mary Walrath to set a deadline for Solyndra to name any bidders who will try to take over the company’s seven-year, $129,000-a-month lease.
Under the proposed auction rules, iStar won’t know what a bidder wants to do with the building Solyndra leases “until just before the sale hearing,” which doesn’t give iStar enough time to decide whether it objects to the proposed buyer, the landlord said in court papers filed today in Wilmington, Delaware.
Solyndra doesn’t yet have an initial bidder. The company said in court earlier this month that it may have two parties interested in buying and reopening its factory.
The company, whose $535 million federal loan guarantee is under investigation by Republicans in Congress, filed bankruptcy this month with a plan to either sell its eight-month-old factory, or liquidate the specialized equipment used to manufacture its solar panels.
After the company fired about 1,100 workers on Aug. 31 and filed for bankruptcy, the Federal Bureau of Investigation searched its Fremont, California headquarters.
The federal loan was used to help build the company’s factory, which opened in January.
The case is In re Solyndra LLC 11-12799, U.S. Bankruptcy Court, District of Delaware (Wilmington).
-- Editors: Fred Strasser, Mary Romano