Solyndra asks court for 90-day extension of final DIP termination date

By Lisa Kerner

Charlotte, N.C., Feb. 7 - Solyndra LLC and 360 Degree Solar Holdings, Inc. asked the court to extend the commitment termination date for the use of cash collateral to June 2 from March 4, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing is set for Feb. 22.

Specifically the debtors want to have continued access to cash collateral and to borrowings available under the $4 million senior secured, superpriority debtor-in-possession term loan approved as part of the final order on Sept. 27.

The debtors are soliciting consent to the proposed extended commitment termination date from their principal secured lenders, Argonaut Ventures I, LLC and the U.S. Dept. of Energy, the filing said.

There are no plans to amend or increase the DIP agreement.

In their motion, the debtors said while they have ceased manufacturing operations and reduced the number of employees to a "skeletal basis," the process to dismantle and sell their assets, certain of which is chemically contaminated, is costly and requires knowledgeable staff to complete.

The debtors are also currently crafting a Chapter 11 plan.

Without an extension, Solyndra will not have sufficient liquidity to propose a plan or manage the Chapter 11 cases. It will be forced to convert its cases to Chapter 7, the filing said.

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

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