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Solyndra Trustee Says Lien Fight Should Stay In Delaware

June 24, 2013


The trustee overseeing the estate of failed solar-power company Solyndra LLC on Wednesday urged a Delaware bankruptcy judge to reject a creditor’s bid to transfer a lien dispute to California, saying both jurisdiction and economy call for keeping the issue in the First State.

Kinetic Systems Inc., which holds a $1.2 million mechanic’s lien on proceeds brought in from the sale of Solyndra’s mammoth headquarters, says it should be allowed to resolve its dispute in California since the debtor and the trustee have no interest in funds earmarked solely for secured creditors….

Kinetic is represented Richard G. Placey and Natalie D. Ramsey of Montgomery McCracken Walker & Rhoads LLP and Scott Hennigh and Mathew Troughton of Sheppard Mullin Richter & Hampton LLP.