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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: goldworldnet who wrote (489676)	6/4/2012 12:56:40 PM
From: Alan Smithee	4 Recommendations Respond to of 793964

The government is totally in charge. No, the government is not totally in charge. The Solyndra bankruptcy case is a Chapter 11, typically referred to as a reorganization. I'd say the plan will be liquidation, but conducted under the umbrella of a Ch. 11 case. This is sometimes referred to as a Liquidating Plan. The following is the role of the US Trustee in a Bankruptcy case (from the DOJ website): The United States Trustee Program is a component of the Department of Justice that seeks to promote the efficiency and protect the integrity of the Federal bankruptcy system. To further the public interest in the just, speedy and economical resolution of cases filed under the Bankruptcy Code, the Program monitors the conduct of bankruptcy parties and private estate trustees, oversees related administrative functions, and acts to ensure compliance with applicable laws and procedures. It also identifies and helps investigate bankruptcy fraud and abuse in coordination with United States Attorneys, the Federal Bureau of Investigation, and other law enforcement agencies. justice.gov Among the duties of the US Trustee: Specific responsibilities of the United States Trustees include: Appointing and supervising private trustees 3/ who administer Chapter 7, 12, and 13 bankruptcy estates (and serving as trustees in such cases where private trustees are unable or unwilling to serve); Taking legal action to enforce the requirements of the Bankruptcy Code and to prevent fraud and abuse; Referring matters for investigation and criminal prosecution when appropriate; Ensuring that bankruptcy estates are administered promptly and efficiently, and that professional fees are reasonable; Appointing and convening creditors' committees in Chapter 11 business reorganization cases; Reviewing disclosure statements and applications for the retention of professionals; and Advocating matters relating to the Bankruptcy Code and rules of procedure in court. Last fall, the US Trustee moved the Court for appointment of a Chapter 11 Trustee. The Court denied that request: Solyndra Judge Denies Request for Trustee to Run BankruptcyAt present, Solyndra is a debtor-in-possession. Effectively, Solyndra is its own Trustee. I downloaded and surveyed the 81 page claims register. Among other things, the claims register reveals: $29.9 million in secured claims, including California property tax claims; $769 million in unsecured claims; $815 million in total claims (secured, unsecured, priority and administrative). The only US governmental entity with a claim on file is the Department of Treasury. Interestingly, IRS's claim does not have a dollar amount assigned to it. I'd assume it is a placeholder claim that will be amended at some point in the future. I have not reviewed the claims themselves. Some other interesting items in the claims register: Several landscapers have claims; Multiple attorneys are owed lots of money; Quick Dog, of Campbell, CA is owed money. Quick Dog is a Hot Dog Place. Stuft Pizza of Millpitas, CA is owed $3,571. But, getting back to my original point: The US government is decidedly not in charge of this bankruptcy. Solyndra, as debtor-in-possession is. The US government's only claims in the bankruptcy case have been filed by the Department of the Treasury (IRS). The people of the United States do not own Solyndra's patents.