IRS objects to Solyndra bankruptcy plan, Kaiser firm tax breaks

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Interesting story from Reuters earlier this week: The IRS has filed an objection to the bankruptcy plan of Solyndra, the failed solar panel manufacturer that had been backed by Federal loan guarantees and the investment arm of the George Kaiser Family Foundation:

Solyndra's bankruptcy plan could prove a further embarrassment to the administration if it is seen rewarding risk-driven venture capitalists ahead of unsecured creditors such as suppliers and laid-off staff.

In its court filing on Wednesday, the IRS opposed Solyndra's plan. If approved by creditors, a holding company would emerge from bankruptcy with no employees or business operations - but as much as $350 million in tax breaks that could be used by Solyndra's investors, including Argonaut Ventures.

Argonaut is the investment arm of a foundation tied to the Democratic fundraiser, Oklahoma billionaire George Kaiser. Most of the tax breaks would come in the form of Net Operating Losses (NOLs) which could be used to offset future taxable income.

Meanwhile, under the bankruptcy plan Solyndra's creditors would receive pennies on the dollar, the IRS said, adding that the principal purpose of the plan is "tax avoidance."...

The IRS cited emails from Kaiser to one of the venture firm's managing directors.

"I would go a long way to preserve the NOLs," Kaiser wrote in December 2010.

As Argonaut, Solyndra and its tax professionals worked to determine the amount of tax breaks available to Solyndra, the company's chief financial officer was advised to delay a particular transaction which would have reduced the available NOLs by $100 million, the court filing said.

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3 Comments

Bob said:

Isn't it the height of irony that a local multi-billionaire Democrat party contributor invests in a Loser Green Energy company that gets a $500 million+ U.S. DOE Grant, yet the tightwad doesn't want to pay his fair share of Federal Income taxes?

I haven't heard King Kaiser say a thing for or against Vision2, either.

He was a avid promoter of the 2007 Kaiser River Tax.

With sole-sourced bond underwriting to be provided by Bank of Kaiser. Didn't his own bank underwrite the $100,000,000's of bonds associated with Vision 2025?

Wouldn't Bank of Kaiser game potentially additioanlly $100,000,000's to finance the Vision2 tax grab, including pre-financed (rolled) debt service for principal and interest which begins four years before the Vision2 tax revenues actually start in 2017?

I wonder why he hasn't spoken out either for or against Vision2....After all, he seems such a publically spirited Tulsan!

I'll ask him Sunday if he attends ShalomFest.....

Bob said:

Michael, you are technically correct. The F&M bank affiliate Wells-Nelson did get its name listed on the offering circular as co-underwriter.

Whether the affiliate actually did any work on the debenture, or merely had their name listed as payola for months and months of concerted, positive, puff-piece "news" articles and synchronzied editorials in a certain local family owned newspaper extolling Vision 2025, and that they also just happen to have been principal shareholders of the self-same bank, remains in question.

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This page contains a single entry by Michael Bates published on October 13, 2012 9:58 PM.

Election 2012: Last day to register to vote in Oklahoma was the previous entry in this blog.

Vision2: The alternative in a nutshell is the next entry in this blog.

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