Did You Know...

   

Report: Solyndra Sold Assets Cheap to Entity with Close Ties to Investors

Share
By Doug Powers  •  February 9, 2012 10:08 AM

**Written by Doug Powers

null

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.

Argonaut is the investment arm of a foundation headed by billionaire Oklahoma businessman George Kaiser. Madrone Partners has ties to Wal-Mart’s Walton family.

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 @ThePowersThatBe

blog comments powered by Disqus

Peak pandering: Ahead of Alaska visit, Obama officially renames Mt. McKinley

August 31, 2015 07:48 AM by Doug Powers

obamapoint

“The mountain has spoken”

‘Degrade and ultimately destroy’ ISIS update: JV team ‘growing like crazy’

August 30, 2015 12:03 PM by Doug Powers

obamaisis1

Time to escalate the war on climate change

With friends like these: Iran deputy foreign minister welcomes Harry Reid’s Senate filibuster intention

August 30, 2015 09:32 AM by Doug Powers

harryreid

For the filibuster before he was against it before he was for it again

Thursday open thread: Hillary talks gun control in wake of Va. shootings; Pentagon conforms ISIS threat to match WH narrative

August 27, 2015 08:37 AM by Doug Powers

hillarychillin

Just chillin’ in Opportunist-ville

EO signed by Obama in 2009 could doom Hillary’s ‘classified email’ excuses, but at least Biden is smiling

August 26, 2015 05:05 AM by Doug Powers

hillarypresser

BS alarm dies from exhaustion


Categories: 2016 Campaign, Barack Obama, Corruption, Hillary Clinton, Joe Biden

Follow me on Twitter Follow me on Facebook