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Solyndra Seeks More Time to File Bankruptcy Reorganization Plan

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June 29 (Bloomberg) -- Solyndra LLC, the solar-panel maker that received a $535 million U.S. Energy Department loan guarantee for seeking bankruptcy protection, asked a judge to extend the deadline for filing its reorganization plan.

Lawyers for the Fremont, California-based manufacturer are asking U.S. Bankruptcy Judge Mary Walrath in Wilmington, Delaware, to give them almost two additional months to craft a plan to sell off its assets to satisfy creditors. The plan would be due Aug. 31, according to court filings.

More time will allow Solyndra executives to file “a consensual Chapter 11 plan, thus avoiding complex and protracted litigation,” the company’s lawyers said in a June 28 court filing.

The company sought Chapter 11 protection in September 2011 just days before its offices were raided by the U.S. Federal Bureau of Investigation seeking evidence of possible fraud. The company fired more than 1,000 workers.

Solyndra was one of about 40 alternative-energy projects that received funding from a U.S. Energy Department loan program that helped companies seeking to generate power through wind, solar or other forms of renewable energy. Government officials said they hoped the projects could create more than 50,000 jobs.

Solyndra’s collapse prompted congressional scrutiny of President Barack Obama, who praised the company during a May 2010 tour of its facilities. The company faced criticism from Republicans in Congress over the federal loan guarantee it used to build a $733 million factory.

The case is In re Solyndra LLC, 11-12799, U.S. Bankruptcy Court, District of Delaware (Wilmington).

To contact the reporter on this story: Jef Feeley in Wilmington, Delaware, at jfeeley@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net

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