Solyndra wins court approval of sale procedures; Feb. 22 auction set

By Jim Witters

Wilmington, Del., Dec. 21 - Solyndra LLC received approval Wednesday to proceed with the sale of its core assets and to attempt a turnkey sale of the business.

The approval came during a hearing in U.S. Bankruptcy Court for the District of Delaware.

Debtors' attorney Joshua Fried said the modified procedures approved Wednesday allow for two auctions to be conducted if a turnkey sale fails to occur.

Auction schedule

The first auction, scheduled for Feb. 22, would include core assets "of the type that may be immediately sold without the need to obtain permits or other approvals from local authorities."

A second auction, to occur before Sept. 30, would include assets that "must first be cleansed and inspected by local authorities, who must also issue permits in order for the debtors to sell and remove these particular assets," Fried said.

"The debtors are actively engaged in attempting to effectuate a turnkey sale of their business. Thus, auction and sale of the core assets would only be an alternative outcome in the event that the debtors are unable to implement the turnkey sale," Fried said.

Auctioneer agreement

Under the terms of the modified procedures approved Dec. 21, auctioneers Heritage Global Partners, Counsel RB Capital, LLC, Hilco Industrial, LLC and the Branford Group will advance Solyndra $4.25 million but will do so in two installments instead of a single payment.

The auctioneers will advance Solyndra $2 million by Jan. 1. The remaining $2.25 million will be advanced if Solyndra schedules a second auction before Sept. 30.

The first advance will be paid from the proceeds of the first auction. If the proceeds fall short, the debtor will refund the balance of the advance by March 31, according to court documents.

If a second auction is scheduled to occur before Sept. 30, payment of the shortfall will be delayed until after that auction.

Solyndra is a Fremont, Calif.-based manufacturer of cylindrical solar photovoltaic systems for large industrial and commercial rooftops. The company filed for bankruptcy on Sept. 6 under Chapter 11 case number 11-12799.

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