**Written by Doug Powers
What’s a week without more suspicious Solyndra news? This should be enough to get us by until the inevitable almost weekly document dump that could come tomorrow.
From the Washington Times:
Fast running out of money, solar-panel maker Solyndra LLC last summer sold off nearly $60 million worth of inventory for less than $20 million in cash to a newly formed corporate entity closely tied to the company’s biggest investors, records show.
Backed by $535 million in federal loan guarantees but burning through the little cash it had left, Solyndra made its first sale in late July to a corporate entity that had been formed just a day earlier. Three more transactions followed over the next few weeks with the same buyer, Solyndra Solar II.
Todd Zywicki, bankruptcy professor at the George Mason University School of Law, said it’s not unusual for troubled companies to sell off assets to improve liquidity. But he said the inventory sales figure cited by Solyndra — $58.1 million in inventory for $17.5 million in cash — seems unusual.
“The test under the bankruptcy code is whether the sale was for reasonably equivalent value and selling inventory at such a huge discount raises real concerns,” he said. “If Solyndra Solar II is owned or controlled by any insiders or anything like that, then it becomes even more suspicious.”
No word on how much the whistling robots were re-sold for.
Would the aforementioned bankruptcy professor consider these to be “insiders”?
Solyndra Solar II was formed in Delaware by affiliates of Solyndra’s debtor in possession lender — investors Argonaut Private Equity and Madrone Capital Partners — as well as other debt holders, bankruptcy and government records show. Another special-purpose entity, Solyndra Solar LLC, was formed to purchase the company’s accounts receivable.
The real test is to wait and see if Solyndra Solar II (Electric Boondoggleoo) sells that inventory for which they paid $17.5 million back to the government for ten times that amount so the Department of Energy can offer it to the next clean energy upstart taxpayers will be on the hook for and thus complete the “green jobs circle of life.”
Obviously glass tubes used in solar panels must have not been in demand during the resale process. Your tax dollars at work:
**Written by Doug Powers
Twitter @ThePowersThatBeblog comments powered by Disqus
October 19, 2014 08:43 PM by Doug Powers
George Stephanopoulos: Ebola Czar Klain is the communications and management expert government needs
October 19, 2014 12:33 PM by Doug Powers
October 17, 2014 01:50 PM by Doug Powers
October 16, 2014 07:19 PM by Doug Powers
October 15, 2014 07:12 PM by Doug Powers