CBS News/ September 27, 2011, 7:37 AM

Bankruptcy hearing for shuttered Solyndra

The California solar manufacturing company that the federal government loaned $528 million to - and which closed its doors, laying off hundreds of workers - will be in a U.S. bankruptcy court in Delaware Tuesday morning.

The proceeding is likely to shed more light on the company that closed abruptly earlier this month, reports CBS News correspondent John Blackstone.

At Tuesday's bankruptcy hearing Solyndra will ask for permission to auction off its state-of-the-art factory built with more than $500 million from the federal government.

Last Friday, before a congressional committee, Solyndra's two top executives pleaded the Fifth, on the advice of their well-paid attorneys.

Solyndra execs keep mum on $528M gov't loan

In bankruptcy court filings Solyndra lists nearly a dozen attorneys being paid from $255 an hour to $950 an hour. The company also wants more than $300,000 a week to pay about 100 employees still working there.

But 900 laid-off workers are looking to the bankruptcy court to help them collect severance pay they didn't get when the company suddenly shut down.

Alan Harper worked as a maintenance technician at Solyndra for three and a half years. Now he's going to job fairs.

But when President Obama visited the Solyndra factory last year, Harper was convinced the company had a bright future: "If it hit big, then it hit big. But it didn't," Harper said. "Oh well, I took a chance."

But Solyndra, now under FBI investigation, took a chance with a half-billion taxpayer dollars, and lost.

© 2011 CBS Interactive Inc. All Rights Reserved.
9 Comments Add a Comment
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mttrailboss01 says:
Stupid move by The White House, to give this company money, our hard earned money.. If The White House staff and the President, keep making these stupid moves.., we will have a one-term president. I hope, wish and pray, that 'two or three' popular, hard hitting Democrates would enter the race for the presidency, (right now) and before the Democratic Party Convention or we will have a one-term president. The Republican Party, especially the far-right and Tea Party members are trying their best, to make sure, that President Barack Obama is a one-term president, at all cost ($$$). We need 'more' popular Democrats in the race for the presidency or Democrates, you will have a one-term president. Mike in Montana
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Jhihmoac says:
"Last Friday, before a congressional committee, Solyndra's two top executives pleaded the Fifth, on the advice of their well-paid attorneys."...Kind of tells ya where all that money went...Ya think?
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afmcalax says:
Why no anger at the corporate executives that once gain screwed the tax payer and their workers with the same old corporate requests for welfare with no accountability? This is why America is failing ... not because of its workers, but because the vast majority of corporate executives are incompetent and/or criminal. The lack of investment is managements fault; not workers. The lack of a viable business plan is managements fault; not workers. The decision to pay huge sums to Wall Street for mergers instead of investing in their core products is managements fault; not the workers. It goes on for ever. Corporate failure is almost 100% managements fault and not caused by the workers. Greed and incompetence by management are usually the 2 causal agents. Stop blaming the President and/or the workers ... this is another case of negligent management.
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nomorelibs replies:
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Don't you know? It's only corruption when it's the GOP.
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dantom39 says:
Great now the taxpayers get their money back oh they don.t suprise suprise .
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myIife2live says:
If Michelle and Barrack Obama get away with this one, it will be because they are black. This company didn't last long enough for the ink to dry on their business cards. They were predicted to fail from the beginning, and the Obama's were discouraged from making the loans. Presidents have been impeached for less. What a waste of taxpayers' monies. Liberals should be outraged along with conservatives, especially since liberals hate subsidies to "rich corporations".
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rightbehind says:
For what has been spent, "1.4 trillion" on the two corporate wars we could have put solar power on 1 of every 3 single family homes in the United States. It's rapidly approaching 2 of every 3.
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rightbehind replies:
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When people begin to understand how solar technology works the nut cases will go into hiding. Unlike many would like you to believe it does work beyond the Mason Dixon line. If fact we have used it to visit other worlds.
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owlgal says:
So is our tax money paying for these high priced lawyers?
Way to go Obama
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