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The Latest Dept of Energy Loan Recipient to Declare Bankruptcy Is…

By Doug Powers  •  October 31, 2011 02:00 PM

**Written by Doug Powers

The pessimist sees this as taxpayers being out $43 million, but the optimistic green bureaucrat will compare it to Solyndra and tout it as saving taxpayers $492 million.

The latest DoE loan recipient to declare bankruptcy is Beacon Power Corp:

A Massachusetts company that received a $43 million Energy Department loan guarantee last year filed for bankruptcy Sunday, a step certain to fuel criticism of federal green energy financing in the wake of the solar company Solyndra’s collapse.

Beacon Power Corp., which develops energy storage systems, filed for bankruptcy protection in the U.S. Bankruptcy Court in Delaware.

Beacon Power had received federal loan guarantee to help build an energy storage plant in Stephentown, New York that began operating in January. The Treasury Department’s Federal Financing Bank provided the loan.

Beacon sought bankruptcy protection two days after the White House ordered an independent 60-day evaluation of the Energy Department’s loan programs aimed at ensuring effective management and monitoring.

As usual, when explaining Beacon Power Corp., the Department of Energy will claim they performed their due diligence. As you’ll read below, the threshold of what’s considered a “red flag” is apparently much more lax when you’re spending somebody else’s money.

From Verum Serum:

It looks like the Administration will also have some questions to answer about their evaluation of Beacon’s credit-worthiness. Because just weeks before the DOE granted final approval of the loan, they were on the verge of being de-listed.

In mid-September [2009], Beacon received word from NASDAQ that it was out of compliance with the exchange’s minimum trading-price of $1 per share. Beacon Power closed at 72 cents a share the day NASDAQ sent its notice. Beacon said it believes it meets applicable standards, other than the minimum bid price requirement.

Read the rest here.

Meanwhile, Nevada Geothermal, with about $145 million of taxpayer money at stake, is dancing on the insolvency line. However, one DoE loan recipient, Fisker, does look to be creating jobs… in Finland.

**Written by Doug Powers

Twitter @ThePowersThatBe

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Categories: Enviro-nitwits, fiscal stimulus, Politics