BUSINESS

Solyndra Bankruptcy Plan Approved, Even As Government Complains It Offers Huge Tax Breaks To Investors

FILE - This Monday, Oct. 31, 2011 file photo shows an auction sign at the bankrupt Solyndra headquarters in Fremont, Calif. b
FILE - This Monday, Oct. 31, 2011 file photo shows an auction sign at the bankrupt Solyndra headquarters in Fremont, Calif. before an auction. The bankrupt solar company Solyndra has become a rallying point for conservatives who hold up the California firm as a symbol of the Obama administration's failed economic policies. Now hundreds of glass rods custom made for Solyndra solar panels have found new life as an art installation at the University of California, Berkeley. But like all things associated with Solyndra, the "SOL Grotto" exhibit has become a political target this election season. (AP Photo/Paul Sakuma, File)

(Reuters) - Solyndra, the failed solar panel maker, received court approval on Monday for its plan to repay creditors after a bankruptcy judge overruled objections by the U.S. government.

The government, which said it may appeal the ruling, had said the plan improperly provided $341 million in tax breaks to venture capital investors Argonaut Private Equity and Madrone Capital Partners.

In approving the company's proposal, U.S. Bankruptcy Judge Mary Walrath in Delaware said the government had failed to prove the primary purpose of the plan was to preserve tax benefits for the investors.

The U.S. government may decide to appeal, said Anne Oliver, an attorney for the Internal Revenue Service. At Oliver's request, Walrath delayed the repayment plan from going into effect for 10 days.

(Editing by Lisa Von Ahn)

HuffPost

BEFORE YOU GO

PHOTO GALLERY
14 Facts Obama Doesn't Want You To Know
CONVERSATIONS