Solyndra Bankruptcy Makes Headlines, Again
Since Solyndra filed for bankruptcy in 2011, many issues have surfaced about the company’s operations and managing of finances. Many people balked at the filing after learning the solar company had received a $500 million government bailout just two years prior. Further issues spark controversy as company executives began pushing to receive their bonuses as once promised, a move not commonly found in corporate restructuring cases.
This week, the U.S. Bankruptcy Judge presiding over Solyndra’s case granted the company approval to pay corporate bonuses. Solyndra may being paying a few eligible employees up to $30,000 a piece, for a total of $368,500 in bonuses. Nearly 20 company executives are in the running to be paid if they successfully meet preset performance milestones during the remaining bankruptcy case.
Many objections were heard in court regarding corporate bonuses, stating a company in the middle of liquidating assets has no business paying employees extra money for their work. The judge overruled these objections under the idea that giving bonuses to current employees for increased performance would be more cost effective than hiring new individuals to help manage the remaining operations in bankruptcy.