Solyndra Bankruptcy Plan Is Opposed by IRS, Energy Department

Solyndra LLC, the failed solar-panel maker that received a $535 million U.S. Energy Department loan guarantee before going bankrupt, faces objections to its bankruptcy plan from the Internal Revenue Service and the Energy Department.

The IRS argues in court papers filed yesterday in Wilmington, Delaware, that the plan can’t be approved because its principal purpose is to allow the owners of Solyndra’s parent, Argonaut Ventures I LLC and Madrone Partners LP, to avoid future taxes.