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Senior Advisor

Solyndra: the rest of the story

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Having sold off its manufacturing plant, fired nearly 1,000 workers and proven the non-viability of its business model, Solyndra's only real assets are what the IRS calls "tax attributes." These are between $875 million and $975 million in net operating losses that can reduce future taxable income, which the IRS values as high as $350 million. Before it went toes up, Solyndra also accumulated $12 million in solar tax credits that can reduce tax liabilities dollar for dollar.

Tax-loss carry-forwards are routine but worthless if a company can't turn profits to pay taxes on. So Solyndra's owners are asking the court to liquidate the rest of the business and contribute a net $6.7 million to pay off creditors for pennies on the dollar. A holding corporation will then emerge from Chapter 11 that won't make products or employ workers, but it will get the Solyndra tax offsets.

The dummy company is owned by Argonaut Ventures I LLC, Solyndra's largest shareholder and the primary investment arm of the George Kaiser Family Foundation. Mr. Kaiser is a Tulsa oil billionaire who bundled campaign checks for Mr. Obama in 2008. The other owner is Madrone Partners LP, a California venture outfit.

 

http://online.wsj.com/article/SB10000872396390444799904578050803545600588.html?mod=WSJ_Opinion_LEADT...

2 Replies
Highlighted
Advisor

Re: Solyndra: the rest of the story

maybe we can get mr. kraft to check that guy out

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Veteran Advisor

Re: Solyndra: the rest of the story

Seems to me, the tax offsets, And solar credits should go down with the company. Didn't this cost the government enough, yet?