Solar Company That Received $535 Million Stimulus Loan Guarantee Files Chapter 11
**Written by Doug Powers
During President Obama’s upcoming job speech, if you do a shot whenever you hear the words “invest in clean energy” you’ll be asleep before the teleprompter’s internal cooling fan kicks into action.
Not that it was necessary, but here’s yet another reason to be extremely wary of that repeated green clarion call:
A California-based solar company that received a $535 million loan guarantee from the Obama administration announced Wednesday that it will shut down.
The company, Solyndra Inc., said Wednesday it would suspend its manufacturing operations and lay off 1,100 employees effective immediately. The company said it intends to file a petition for Chapter 11 bankruptcy protection.
“Regulatory and policy uncertainties in recent months created significant near-term excess supply and price erosion,” Solyndra CEO Brian Harrison said in a statement. “Raising incremental capital in this environment was not possible. This was an unexpected outcome and is most unfortunate.”
The announcement comes at a tough time for the solar industry, which has faced free-falling solar panel prices.
But the Obama administration has doubled-down on its investments in the industry. The Energy Department finalized last week an $852 million loan guarantee for a separate California solar project sponsored by NextEra Energy. Earlier in August, DOE finalized a $197 million loan guarantee for solar manufacturing facilities in Oregon and California.
In July of this year, smelling a carbon-neutral rat, Republicans subpoenaed documents associated with the Energy Department’s loan guarantee to Solyndra:
The Oversight and Investigations subcommittee voted 14-8 along party lines to subpoena the White House Office of Management and Budget for documents related to DOE’s 2009 $535 million loan guarantee to Solyndra Inc. The loan guarantee helped finance the construction of a new plant to manufacture solar panels.
Republicans on the subcommittee launched an investigation into the loan guarantee after Solyndra canceled plans to go public and closed down an existing plant.
[...]
Solyndra said Thursday that its financial outlook is strong. CEO Brian Harrison, in a statement, said the company is “growing rapidly.”
The Republicans were right to be suspicious.
Last year, the company had the additional burden of direct exposure to the “Reverse Midas Touch”:
During a visit to the Fremont facility in spring of 2010, the President said the factory “is just a testament to American ingenuity and dynamism and the fact that we continue to have the best universities in the world, the best technology in the world, and most importantly the best workers in the world.”
Not long ago, Evergreen Solar, the recipient of a $58 million financial aid package from the state of Massachusetts, filed for bankruptcy.
Maybe if the administration would have followed through with the promise to install solar panels on the White House these companies would have had a little more business.
Solyndra is the third U.S. solar manufacturer to file for bankruptcy in a month as falling panel prices and weak global demand is driving a wave of industry consolidation.
**Written by Doug Powers
Twitter @ThePowersThatBe
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Categories: Barack Obama,fiscal stimulus,global warming



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I have an idea for a solar powered night light.
Where do I get my million bucks?
Green jobs???? An excuse to redistribute funds. What a scam. Jobs for tax cheats result in having those same cheats cheating the rest of us out of our money. There is a place for people like this…..JAIL!
FIFY
Solyndra CEO Brian Harrison (singing):
The sun’ll come out
Tomorrow
Bet your bottom dollar
That tomorrow
There’ll be sun!
Just thinkin’ about
Tomorrow
Clears away the cobwebs,
And the sorrow
‘Til there’s none!
When I’m stuck with a day
That’s gray,
And lonely,
I just stick out my chin
And Grin,
And Say,
Oh!
The sun’ll come out
Tomorrow
So ya gotta hang on
‘Til tomorrow
Come what may
Tomorrow! Tomorrow!
I love ya Tomorrow!
You’re always
A day
A way!
There’s that adverb again. Gee, sorry tax payers, it was most unfortunate we threw $535 million of your money down the toilet, not to worry just know we didn’t expect that to happen.
Im surprised he did not blame the Tsunami, the Arab Spring, and the economic problems of Europe….
Show me the money!
I hear the Mexican drug cartel is getting into Solar Energy, there’s more money in it.
If we all took a shot everytime that adverb was uttered we would stay drunk all the way through the 2012 election.
So much for gov “investments”. At this rate, the administration will have no trouble bankrupting the Chinese with more “green” stuff. The new world order will be, no one has anything because the US spent it on foolish environmental projects. bho can be reelected with the slogan – Morons of the World Unite!
Who says some of us aren’t? Sometimes befuddlement is bliss!
The solution is simple (as any Dem can tell you) – the loans weren’t large enough! We simply must give them more of the taxpayers’ money!
Well yeah – they scammed a scammer. I think it’s ingenious…
Good… the sun is racist anyway… been tryin to scotch our Blessed One and ManPigBoar’s global warming initiative with its damn racist cloud-warmin’ practices.
That is what this business got from having bho come to their place! Almost every business he has come to has gone belly up! Do not let this slug near your business, ever! I forget, if bho even mentions your business, it could go down the tubes also!
L
The gospel of St. Krugman. Thanks be to Gaia.
Another example for how putting capital in a baloney machine that can’t compete in the market place just doesn’t work. Whether it’s taxpayer money or private money, if you won’t fix the reasons why they can’t compete, they will fail regardless of whose capital they are wasting.
China is rigging the industry not only via domestic subsidies and exchange rate manipulation but because of US subsidies and backwards trade policy.
Play it again, Sam!
Par for the course in Sir Golfsalot’s administration.
unexpected<
It all begins with several generous and continual contributions to Barky’s re-election campaign, followed by a full color, illustrated proposal submitted to Barky’s staff of how you plan to create alterntive energy from lime jello from which certain people can profit handsomely put people to work for awhile and make Barky look like he cares about the environment with the federal funds distributed your way, much of which won’t actually go directly into your project, but split among you and your cronies in carefully selected investements.
Can’t miss.
Exactly!! I smell a huge RAT! Did this company ever get their money? Or any of it? I want an accounting of that stimulous money…every penny!! There is some serious thievery going on here. They are literally STEALING OUR money and we don’t have a thing to say about it.
I believe they call this “taxation without representation”. Where have I heard this phrase before? Hmmmm….
Time to dump some more “tea” in the harbor, folks!
I have an idea for a mansion in Montecito….
Love the “Sir Golfsalot” moniker–the person, not so much.
What you bet all we hear is crickets as somebody “looks into this”?
“Regulatory and policy uncertainties.” Why don’t people see tgat this is a problem, and who in DC is causing it??? This company can come right out and say it and people won’t listen.
Translation; The election of clear-thinking Tea Party Republicans in November 2010
No kidding. It seems everytime we turn around we hear stories of millions of $’s going up in smoke. Just like the story Doug had about the insulating of houses in Seattle creating 14 jobs (most of them administrative) and only 3 houses being insulated yet it cost over $20 million. As Doug listed on his site Seattle spent $1.4 million per job over 16 months.
Translation; Has caused the free flow of government cash to dry up.
Green is a scam, solar energy density, which you can look up in an engineering handbook will produce 10 times the electricity cost of coal.
Only someone as dumb as Obama would think otherwise.
$535m divided by 1,100 employees = $486,363.00 per Green Job. So that does seem to be about the going rate?
BE…sides, the actual construction of the panels themselves is by now pretty straightforward. And as we can see, without equal or greater incentives in the retail distribution channel, it all falls apart rather quickly.
To wit; falling panel prices. Sheer freaking genius I tell you!
I’d believe that.
I can tell you, as the sole owner/employee of a small business, that if I got a loan guarantee of even $1,000, I would make money on it and pay the loan back. I’m making it now (barely, but still in the black) without that kind of help. Just an average American with some marketable services. Just gotta keep working my market and “securing” my own future. Imagine that…creating your own stimulus. Do they teach that at Yale business school?
I’m thinking of applying for a government grant to fund the J S Ragman Solar Cow Dung Decomposition Plant. For a half a billion dollars, I’ll build a big wall around a piece of country acreage. Then all the neighboring dairy farms can come over to dump their manure in my field, where I’ll let the sun decompose it, in an ecologically sound manner, of course.
What do you guys think?
Hawkeye and Cheddar have it right. Follow the money. Happy does as well. There needs to be an accounting to determine exactly where this money has gone. I suspect there are a number of very rich receipients out there.
Grants require documentation, so this company should be able to show us the money path. If they failed to comply with documentation requirements, they should be required to repay the money.
The Congress can require Obama’s handout agencies to show where all the money has gone. It might take a long time and a lot of money, but if the truth comes out, it will be devastating for the administration, I suspect.
It’s about time the information came out about where all our “grant” money and other taxpayer giveaways are going.
I can’t believe W forced that company to shut down.
Yale School of Business and Harvard School of Law have done more damage to this country than the Soviets ever thought of doing.
After a few more such efforts, the solar industry will be “too big to fail”, and require still more money.
Do you mean like this?
White House Admits New Regulations Will Cost US Economy Billions
There is not a lot of information on Solyndra, Inc. currently, but this is what the “named executive officers” were paying themselves back in 2008:
Dr. Christian Gronet 2008 $350,000
Chief Executive Officer
Wilbur G. Stover, Jr. 2008 $518,489
Vice President, Chief Financial Officer
Benjamin Bierman 2008 $514,076
Executive Vice President, Operations & Engineering
Dr. James K. Truman 2008 $298,405
Vice President, Marketing & Business Development
I’ve invented a light-weight portable solar powered clothes dryer. I need several hundred million dollars to really make it take off, but if you want one now I can cut you one off the spool.
Somebody please explain to me how this latest Obama gang managed to blow $500,000,000 of taxpayer money so quickly.
For crying out loud, I mean it would take longer to shovel it out of a truck and burn it. They probably only got through 2 or 3 appletinis and a Wagyu steak before it was all gone.
For once, Obama told the truth:
Notice what’s missing??
“the best public schools in the world”
Cotton, steel, or aluminum?
I hear the mob is getting out of the garbage hauling business and into the solar energy business. It’s a lot more lucrative, and it smells better (by a little bit).
Well, you’ve answered the question of where the money went, well done. Who pays themselves $500,000 salary when your company is losing money?
Dexter, I like your idea. Maybe we can rent adjoining suites for our offices in Grand Cayman?
True. At the same time we’ve all implied Malfeasance of Office ( in our own twisted and flummoxed way? )
RedDog said:
Talk about Burn Rate! That’s enough to make a crooked DOD Contractor blush! They’re probably wondering ( what’s their ‘secret’? ) Had you been an Investor and this an IPO, you’d be talking to a Securities Lawyer and I mean yesterday.
Let’s see, lavish lifestyles and UPFRONT comp packages. Check! No viable product backed by so much “blue sky”. Check! No real marketing plan. Check!
What aren’t -we- filing suit?
A criminal, or anyone in the Obama administration.
RedDog, you’re being redundant.
Green Nylon… long lasting.
Have your peeps call my peeps… let’s do lunch!
A visit by Obama= the kiss of death.
Liberals should never be allowed to handle public money, its why the IMF is such fantastically horrid idea, for us, for slithering liberal financiers? Not so much.
Mi scusi signore, mi scusi. You are so correct.
Let me guess, he inherited the problems from the previous CEO.
I know it was you Fredo. You broke my heart, you broke my heart.
Actually on second thought Rags, the Obamacistas are exceptionally uncommon criminals, distinguishing themselves from the run of the mill variety.
I would dearly love for a real life Elliot Ness to run them into a jail cell. They really are a lawless bunch who need to be made an example of.
Sitting next to George Kennedy on an airplane
A visit from Obama
An endorsement from Jimmy Carter
Honking at a motorcycle gang
Water skiing behind a submarine
Joggin home from your vasectomy
yes, with all this energy saving in the air, old school clothes lines are banned here. they work better than dryers, and don’t use any carbon based fuel to operate. and they work better then solar powered ones, since they work at night too.
It appears that the DC AG has found another $330,000 tax dollars that was diverted from its intended purpose:
that is why i got in so much trouble earlier in the year, when obama picked the bears to go to the superbowl. i knew it was over, right then and there.
When my neighbors first moved into the area they tried a clothesline. After the first week they gave up. Of course it was in early spring in WA ST, so that may have had something to do with it.
Only in the size, not the nature of the crime. Barry is just another street hustler, with a higher credit limit.
FIFY
Barney Frank works there?
It gives insight into the phrase Miracle Hands. “Hey darlin, let me inspect those fun bags please.”
Miracle Hands sounds more like a massage parlor.
How much for the hot-oil massage with happy ending?
There’s so many jokes just in this one paragraph.
I’ll fly y’all down on my corporate jet.
Truesoldier said:
I’ll uh… nevermind.
RedDog said:
And look how good the dot.bomb scam was to Maria Cantwell! Come to think of it, can’t recall what her company did either? Small matter, she parlayed it into a fortune. Our’s but whatever.
No, guys like Phil and I get at least a call a week on these scams. You can smell ‘em coming up the block!
I knew you guys would be way ahead of me, LOL.
I plan to get all the Global Warming patsies to invest in pineapple farms in the Dakotas.
Dexter Alarious #74,
I read last year that Iceland`s greatest ag. export was bananas. If Iceland can grow bananas, the Dakotas can grow enough pineapples to make pina coladas for every man, woman and child on Earth !
I plan on selling home insurance policies guaranteeing protection from solar flares. Then I’ll lobby the Hawaii legislature to make the insurance mandatory.
It was a bad idea when Carter was pres, and its a bad idea today. How we have let ourselves be scammed by people who call themselves environmentalists.
Hmmmm, I’m thinkin another brilliant can’t miss scheme – building solor powered corporate pullmans for Plugs Biden’s Bullet Trains.
What’s Barky’s 2012 website again?
For private companies and employees, yes…..not necessarily the corporate executives.
What part of free enterprise don’t these people understand? Supply and demand. No demand? No amount of supply will fix that.
So, maybe I’m missing something. All this stimulus money is going to someone or someone’s company. As a business owner, I would be accountable for any income received.
Is anyone auditing the personal accounts of these recipients? My guess is no.
Congratulations, Mr. Jackass-In-Chief!!! Your policies are now KILLING those green jobs as well!!! Nice goin’, Obummer, you just wasted $600 Million of tax payer money!!! And you Dummycrats wonder why Republicans won’t give you any more money!?!?! Way to go, Corruptocrat-In-Chief!!!
The “free” part. Implies some degree of independence. They prefer their own brand of enterprise, criminal, in the guise of government, with them in control of the enterprise by means of legislation, regulation and taxation.
And virtually all these pigs are uber Liberals. Go figure.
Gee, even I could run a company at a $535 million dollar loss.
FIFY.
Thing is though, I don’t need to do shots to feel sick to my stomach when listening to Obie speak.
Perhaps the only time Barry makes par.
But seriously folks, the Green jobs and all of these projects waste all their money in paying office lackeys and pols friends to set up things that don’t work.
Not quite the same was the Cash for Clunkers. People actually wanted a car discount, and they were OVERWHELMED because there were takers. And they could only do it if they spent $24 K per car to hire the people and buy the computer expertise to process this. Such dumb ideas. The weatherization scheme was stupid even before it was called Green Jobs. Let the housing authorities that run these public housing units figure it out, they are already government workers, and they are already supposed to be maintaining the buildings. Give them some Caulk. Caulk is Cheap.
But the loans to favored industries, to prop up crony Green capitalism…I want to know where the $535 Million actual dollars went…who has it now? and Evergreen Solar too, who got the money? If you are a director, I think you should give your share of the money back.
Ah yes, clotheslines. The smell of sheets hung outside. Nothing like it when you pull the bedspread down and get a whiff of that fabulous spring breeze smell!! They have tried to bottle it, but there is no way but the real thing!!
Before dryers, we hung our clothes outside. In winter, we hung the sheets outside, then brought them in all stiff and frozen, let them thaw out and folded them. They smelled wonderful! Our basement had clothes lines running across the entire ceiling for winter and bad weather days. We actually survived.
I even remember my mom’s wringer washer! Good grief, I’m old!!
Beckel said tonight that we could save tons of money by just painting our roofs white. He was serious! He really believes that! What a racist.
You want a real green job?
Try pushing a pooper scooper behind Kermit the Frog.
I’m getting a sense of deja vu. Seems this happens with each Democratic administration, Carter, Clinton, Obumble. Each tries to ram “green” energy such as solar, geothermal and wind power down our throats to wean us off foreign oil. Fails every time.
No way can you be, because I remember that too!!
Did not know W. had been the CEO at Solyndra. Learn something new every day.
/sarc off
happyscrapper #89,
When I was about 16 mos. old, Mom`s best friend was holding me while Mom used a wringer-washing machine. I got my arm caught in it up to my elbow. I honestly remember it. And I remember it didn`t really hurt, but I cried because Mom`s friend was so upset and started crying. And Mom laughed. So I laughed.
We all know that the directors of Soylandra paid themselves handsomely, that’s where the money went. Also the new facility that was funded by those tax payer dollars paid for union construction workers, ergo, the unions made out well too. Which means the Democrat Party also did well, because we know where those dues from the union construction workers go. Wonder no more my friend.
As to your last statement, remember back in March ’08, when Congress passed a bill that taxed Wall Street bank bonuses at a 90% surcharge if the bank had received at least $5 Billion in bailout money, well I think your idea has merit based on that bill. Maybe we should propose that idea. In fact the more I think about it, the more the idea has merit. Any compnany who has received Government funding and goes belly up within a certain period of time, say two years, the CEO’s of that company should be required to pay the Government back their salaries. Sounds fair to me, what say you?
You will find that was money well spent. I would expect 5% of the Federal money can ultimately have been found to have been siphoned off and contributed to the President and the Democrat Party.
Stimulus was simply a money laundering scheme.
Happy,
Our dryer went out on us and we “rediscovered” the joy of clotheslines. You are right; it is wonderful. We forget how nice natural drying is.
GO GREEN
The dryer is fixed, but we are still using the lines. I am stringing lines in the basement for this winter.
That’s a keyboard and monitor on your bill
I use a clothesline all spring and summer out here in Cali. Works real well in the high desert hang out for an hour and everything is more than dry.
Upside is I get to stick it to Edison just a wee bit also something they can’t charge me for as of yet.
Try as they might liberals just cannot create Utopia. But they’ll keep trying, even if it kills th…….us.