Stimulus-Backed ‘Green’ Bankruptcy of the Week: Ener1
**Written by Doug Powers

When the story of the Department of Energy’s green loan program is written someday, the entire book will be contained in chapter 11:
After months of financial turmoil, an Energy Department-backed lithium ion battery company has filed for Chapter 11 bankruptcy protection.
The company, Ener1, received a $118 million grant from DOE in 2010 as part of the president’s stimulus package. The money, which went to Ener1 subsidiary EnerDel, aimed to promote renewable energy storage battery technology for electrical grid use.
But despite generous federal support for the company, Ener1 was racked by problems last year. In October, NASDAQ delisted the company due to non-compliance with Securities and Exchange Commission filing requirements. A month later, the company’s president, chief executive, and top financial officer were fired.
On Thursday, Ener1 announced it will initiate a pre-packaged Chapter 11 bankruptcy plan as part of an agreement to restructure the company’s debt obligations.
The problem? Something the government often fails to take into account when spending tons of other people’s money because they think it can be artificially created later on: Product demand:
In a statement announcing the company’s bankruptcy, CEO Alex Sorokin said that the company’s business plan was crippled by insufficient consumer demand.
“We moved aggressively to reduce costs and shift focus when the marketplace did not evolve as quickly as anticipated. Our business plan was impacted when demand for lithium-ion batteries slowed due to lower-than-expected adoption for electric passenger vehicles,” Sorokin wrote.
Translation: You’re not buying Volts fast enough, America!
Not long ago, Ener1 was the proud recipient of a big sloppy Recovery Summer kiss of death from our very own Sheriff Joe Biden:
There will be others.
**Written by Doug Powers
Twitter @ThePowersThatBe
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Categories: Barack Obama,fiscal stimulus,Obama Jobs Death Toll,Politics
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It would be funny but for the fact the taxpayers and borrowed money from china is helping bho/mo and foto’s get rich!
This will be just the tip of the iceburg on how bho has, how can I put it without getting banned, the American public?
L
Damn capitalism anyway! More EPA regulations are needed to FORCE the citizens into buying our products OR pay with their last penny!!!!
When it comes to spending their own money, people are wisely avoiding leftist produced products, which are guaranteed to fail.
When it comes to spending other people’s money, leftists don’t care about inconvenient things like consumer demand, and if people are actually wanting the product. Choice doesn’t matter to leftists. They’ve already made sure taxpayers don’t have a choice.
Queue up Freddie Mercury
You mean like the Volt?
Obowmao: D’oh!
“Terminals up”.
That alone is worth the price of the ticket I paid to get in here.
Actually, I take that back. If you are trying to evoke a mental image of an upside-down battery, akin to an upside-down dead goldfish, shouldn’t it be “terminals down”??
Doug already got that covered.
Rogue: D’oh!
EnerCtrl and EnerEsc could not be reached for comment.
We are already seeing manufacturers breaking under EPA regulations. What we fail to realize that’s the point of the EPA tool. By heavy regulations, only government manufacturing exists. There will no longer be such a thing as choice. Choice is so capitalist.
Translation: John Q. Public is screwed.
Look out! Odumbo is at it (still) again today with his announcement in LV, supposedly supporting T.(Demented) Boone Pickens’ Green + Natural gas plan. Translation: It’s T. Boone’s turn at the public trough.
And after announcing a half trillion dollar cut in defense, Obama said this in the SOTU address
What could go wrong?
Ah, Reverse Midas Touch, everything this administration touches turns into the equivalent of a dried cow chip.
I do admire their consistency, however.
Sheriff Joe says it’s not enough for “the government” to create new jobs, they’re going to create whole new industries!
And therein lies our problem…
It’s a predetermined and designed failure when it comes to spending other people’s, i.e. taxpayers, money. The concept is to sucker the public with responsible “green” energy investment, while at the same time reward and enrich oneself and cronies at the expense of the public. So what if tons of money are poured into failure as long as those responsible for it come out richer for the effort.
In the end the only “green” these people desire is the cash in their bank accounts.
I’ve used that statement to create the following template for future use. It should save time and as we all know, time is taxpayer money.
No charge.
That pretty much sums up the economic and financial efforts of this administration.
You just have to wonder at the irony.
On the one hand, these “greenies”, spoon-fed with stiumulus taxpayer dollars are closing one by one.
On the other hand, Obama’s class envy divisivness goal is to get more taxpayer money.
As Barky takes more money from us, he watches with pride as bankrupt businesses close and lose even more jobs.
What’s the end game here?
Oh yeah, socialism and redistribution.
Also beware; The new euphemism for “Green energy” is now “Clean Energy”. Clean is in the SOTU address 11 times.
So is that the prepackaged plan in which every Obama and DNC donor linked to the company will recieve full reimbursement of their investment while the taxpayer gets screwed?
Today is Michigan’s 175th birthday and it is fitting that I link this article about how a big government style governor (the first governor) way back in the 1830′s tried to jump start Michigan’s population and economy with government run everything. Didn’t work out back then either.
http://www.mackinac.org/5
While the slimestream mediots bury their heads and their journ-o-listic pens deeper into the sand. And the beat goes on … la di da di dee, la di da di da …
it loos like we can make a whole new cable news outlet, just to keep up with all the obama backed green energy bankruptcies.
A Communist’s wet dream: total power to dictate and a boatload of free money. “What do you mean comrade? Why will you not make purchase of perfect pet hair knitting machine? Make for beautimous and warm clothing for children of the magnificent People’s State.” The Russians never had such a bountiful larder as ours to tap into, but our Soviets will wreck us even more quickly due to their greed.
This is the definition of gross criminal malfeasance. I would vote for Ron Paul for this reason alone. He would run this crap into the s*it can and put its pushers in jail.
This is why government in the wrong hands is so incredibly toxic and dangerous. Without a strict fiscal “governor” in place (a balanced budget amendment with a hard % of GDP cap) the politicians will run the government throttle wide open. It is an open invitation to corruption. It will only get worse.
This is why history is so important. We have not learned our lesson apparently, at least those of us “educated” in government schools. Communism, Communitarianism, Socialism, whatever you call it, tries to declare and dictate things to function a certain way. Its proponents are adamant in declaring that government be commandeered to impose these failed Marxian policies on society. The human spirit will not permit that to happen, and it is the human spirit alone that drives healthy commerce and economies. By definition, anything else is tyranny.
I have a dear friend who is Russian and lived there during communism. He lives here now and has for many years..it scares him what he is seeing in this country today. He say’s he has seen it before. So when unsuspecting, utopia dreaming wackos laugh at us because they think we are “paranoid,” forgive them for being so ignorant. They’re going to suffer right along side of us. It’s happened other places and we are not immune from it happening here.
Actually, I’m a little surprised. With the way those Volts tend to catch on fire, I would have expected owners to stock up — keep 3 or 4 batteries in storage as it were. /sarc
Pasadena Phil,
I know Michelle and Doug will appreciate that. Doug just lets his kids handle the DOE-engineered debacle posts so as not to interrupt the Red Wings game.
This will be a big help. It’s good experience, after all, we’re doing this for the children!
***
HI RED_DOG–#25. Don’t fault our Commie buddies for total stupidity. They really do understand product demand. And competitive product pricing.
***
Just check out how many militants and enemy countries are armed with the far cheaper and more reliable Russki and Chicom military equipment. AK-47′s and RPG’s come to mind. Simple, deadly, and cheap. With far cheaper ammo costs.
***
Maybe Comrade Obama can arm our expendable U.S. draftee army with these items at a far lower cost than with the far more expensive U.S. M-16′s and missile weapons. Since He is drastically cutting our professional Army we will see the draft return if a real war ever occurs. We need the bucks to put into the “green” energy and ObamaCare toilets.
***
John Bibb
***
FIFY
On January 26, 2012 at 10:34 am, Flyoverman said:
Rocketman: I didn’t need the image of pushing an OWS draftee through boot camp.
On January 26, 2012 at 12:04 pm, Hangfire said:
I don’t. Cow chips are waaaaay too stringy.
off topic, but mitt has some incredible endorsements. bush 41 picked mitt, remember him, he lost to clinton. bob dole now picks mitt, he also lost to clinton. and john mccain picks mitt, he lost to obama. so mit has the loser endorsement trifecta!
If the Supreme Court upholds the individual mandate and Obamacare, what’s to stop the government from demanding consumers buy what the WH determines is best? Remember the 100 watt incandescent light bulb? Make room for that new lithium ion battery Barack will require to run those in-home video monitors that will make sure you feed your kids the diet Moochelle believes is best for their corpulent little selves.
And Newt has the marriage trifecta down, unless Calista develops a bad cough.
Juuust kidding!
You have a point. If I get the chance I’m voting for Newt. Screw ‘em.
So the question to my fellow citizens is: Do you really think these economy destroying acts were not planned and quiet intentional?
Who(m) will be in line first to get the money ? The political bundlers & hacks or the taxpayer ??
Ron said,
There isn’t enough “critical mass” to carry (1) Obamandate into effect. Not.One So whatever keeps you up at night! We’re “on extension” or the honor sys. or whatever on the CFL bulb thing. Yaaaawn…
Thus far we’ve had exactly -zero- guard members come out of the closet at my unit. Until the thought police are perfected people are going to go on doing precisely as they HAVE been doing.
In case you hadn’t noticed ( it’s tax season ) and for all the technology at our fingertips, no one’s stoked about getting their return in any particular hurry. Not that there’s an organized protest afoot. Three years of this bs and we’re reading the fine print.
Come on Doug, a little fact checking here, PLEASE!
The Volt’s battery is produced by Compact Power, Inc., a subsidiary of LG Chem in Troy Michigan. It is not produced by Ener1, who makes them for the Volvo C30 Electric concept car.
Once again the Taxpayers are Charged with Assault and Battery by the Obama investment wizards.
Will Obummer please sponsor Jimmie Johnsons NASCAR team this year?
That’s it! We can throw the batteries at them when they come for our gas-guzzling cars!
Well, what we have is a classic care of “those who didn’t earn the money, don’t value it and are not careful investing it”. There is no point in being careful with the money, since they will come back to the source for more. Our elected officials TAKE our money and spend it like it burns holes in their pockets. How many more of these “investments” are going to go belly up?
Yep and all the hosts can ask in debates is what did the candidates do/say/write/ 5-25yrs prior.
Buffett (or any other regressive of your choice): “He’s already had his turn! Move over, Pickens! It’s my turn!”
Indeed, with Barry getting to choose which 3 million homes will receive the power generated on public lands. He spoke so much about fairness in the SOTU. Will that energy be rotated among all homes? Not likely. How about everyone else?
Isn’t another word for government-owned and government-operated industries fascism? Seems to me, that is exactly where we are headed.
You mean one of those underpowered batteries made by Obama Battery Co., LLC? We have nothing to fear. The camera will quickly power down and they will no longer see us. Correct? What is that red light light over there on the lamp? The one just below the light bulb? Are they watching us?
I’m going to keep posting the links til someone says “You’re right!” or “That’s clever”… then I’m going to continue posting the links until Obama gets out of the White House…
Green is the New Stupid
Green is as Stupid Does
Alright, who invited the electric car nerd lawyer to the pool party?
Spalding Smails: Doodie!
Ah, I see… so you’re saying there’s too much competition in battery manufacture… looks like Obama has a cure for that…
Funny, they were doing all kinds of hiring here, with all kinds of local “tax incentives” and I was told repeatedly that I should go there to get a job.
My response? Uh, no. They won’t be around long.
Bankruptcy, huh? Like I didn’t see that one coming…
So what was Obama’s grade in Econ 101?
Oh yeah, he sealed those records too.
Did he even pass or take the class?
My point and what scares the heck out of me is that he is planning to gut the military and what is left will have to use very expensive intermittent power. I can see it now, someone trying determine if there is a hostile launch in another country, a cloud blocks out the solar array and his screen goes blank.
Along your point, private home owners would buy this power… right up to when they find out it will cost upwards of 6 times as much. Nobody in their right mind would pay that except a liberal President shoving it down the throat of the military.
They somehow remind me of the policy where those East German warehouses were full of mismatched, odd sized, cardboard soled boots, while those boot factories continued to exceed all government production goals.
Obama never rests. Now he has ordered that the Navy buy biofuels which will be mixed with regular fuel at a final cost of $15.00 a gallon. I am sure that the military is ecstatic to see their fuel costs quadrupling overnight. Of course this means that fuel budgets will have to be decreased to 1/4 what they are now, or less because commanding officers will be told to suck it up and “make it happen”. It was bad enough when I was in a Navy Squadron 15 years ago and we were having to rob parts off of good airplanes just to fix broken ones because there were not enough parts in the supply system. I cannot imagine what it must be like now.
The good news is that, unlike Solyndra, we don’t have to be angry over government loans not being paid back – this one was a GRANT!
Also, where does one get a “pre-packaged Chapter 11 bankruptcy plan?” Do they carry them at Sam’s Club? Does it come with chips?
I think it’s the OB form 32, kinda like OB form 31 (waiver from Obamacare). I think you have to a “friend” of the administration to get the OB form series though.
Forget the Feds. IL has come up with a new way to fund future green company bankruptcies. Gov Quinnocchio has proposed a $1 increase in the yearly IL license plate fee to go directly into a new slush fund to invest in building electric cars. He’s cuttin’ out the middlemen in DC. He don’t need no stinkin’ Obama to crap away taxpayer money–he’ll confiscate it through higher fees and piss it away on his own.
No such thing as “Econ 101″ in our bastions of higher learning. It has been renamed “Marxist Theory” (and I’m only half-kidding).
Did he slip some tongue? Hand up the skirt? Come on…details!! What base did they get to?!?
He’s not “Sheriff Joe”; it’s Vice President “Deputy Fife” Biden.
and here we go.
***
Ener1=EnerZero. It’s the new Comrade Obama math.
***
Can’t someone wire Sheriff Joe’s barstool to a Chevvy Dolt battery and give him some “green” energy to his rear end to wipe that dumb smirk off his face? Maybe smoking his shorts will wake him up.
***
Better living through really pricy electricity. Who says a volts aren’t good for anything?
***
John Bibb
***