Investment funds that were early backers of Solyndra LLC stand to reap
up to $341 million in tax breaks from its bankruptcy, according to court
documents filed on Tuesday, a prospect that could add fuel to the
political firestorm around the failed solar panel maker.
The U.S. government, which lent Solyndra $528 million and may never recover the money, had demanded that the company reveal the value of future tax breaks available to Madrone Partners and Argonaut Ventures, a fund which is controlled by a foundation linked to Democratic fundraiser George Kaiser.
News of possible tax breaks for investors with ties to the Democratic Party could spark a new round of Republican attacks on the Obama administration for its decision to back Solyndra.
In the run-up to the November elections, Republicans have accused the White House of rushing the loan to the company under a program to support clean energy companies. The Democratic administration has said the loan was based on the merits of Solyndra's business prospects.
The two funds plan to bring Solyndra's holding company out of bankruptcy and the potential tax breaks appear to be the main asset, according to documents filed with the U.S. bankruptcy court in Wilmington, Delaware.
The court documents also said the tax breaks could ultimately be worth very little and the company's bankruptcy plan still has to be voted on by creditors and approved by a judge.
The U.S. government, which lent Solyndra $528 million and may never recover the money, had demanded that the company reveal the value of future tax breaks available to Madrone Partners and Argonaut Ventures, a fund which is controlled by a foundation linked to Democratic fundraiser George Kaiser.
News of possible tax breaks for investors with ties to the Democratic Party could spark a new round of Republican attacks on the Obama administration for its decision to back Solyndra.
In the run-up to the November elections, Republicans have accused the White House of rushing the loan to the company under a program to support clean energy companies. The Democratic administration has said the loan was based on the merits of Solyndra's business prospects.
The two funds plan to bring Solyndra's holding company out of bankruptcy and the potential tax breaks appear to be the main asset, according to documents filed with the U.S. bankruptcy court in Wilmington, Delaware.
The court documents also said the tax breaks could ultimately be worth very little and the company's bankruptcy plan still has to be voted on by creditors and approved by a judge.
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