Another green-tech stimulus recipient files for bankruptcy

posted at 3:40 pm on January 26, 2012 by Ed Morrissey

In last year’s State of the Union speech, Barack Obama hailed the great investment he made with taxpayer dollars in the manufacturer of advanced solar panels, only to have Solyndra go down the tubes — taking more than a half-billion dollars in taxpayer money with it.  In this year’s SOTU speech, Obama bragged about having sunk money into “partnership” with the private sector to become a world leader in car-battery sector.  Right on time, that “partner” filed for bankruptcy, too:

An Indiana-based energy storage company that received a $118.5 million stimulus-law grant from the Energy Department filed for bankruptcy Thursday.

Ener1 is asking a federal bankruptcy court in New York to approve a plan to restructure the company’s debt and infuse $81 million in equity funding. …

The Energy Department, in 2009, approved a $118.5 million stimulus-law grant for EnerDel, a subsidiary of the company that develops lithium-ion batteries used in electric vehicles. The grant was part of a broader program aimed at promoting the development of electric-vehicle battery technology.

President Obama touted the program in his State of the Union address this year.

“In three years, our partnership with the private sector has already positioned America to be the world’s leading manufacturer of high-tech batteries,” he said.

We saw this coming last October, when CBS first reported on Ener1′s shaky financial position.  At that time, the company had spent $53 million of the grant and had pledged to create 1700 jobs from it in total.  When the story got reported, Ener1 traded at 11 cents a share, down from its December 2008 peak of $9.40 and the $3 per share price when the Department of Energy decided to invest in a company that had lost two-thirds of its value.  The share price was five cents by the beginning of this month, and is now at two cents a share.

Don’t forget, too, that the $53 million spent by October created jobs … 33 of them.

Perhaps green-tech stimulus recipients should call on Obama to refrain from giving them SOTU shout-outs.

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Comment pages: 1 2

This would be hilarious were it not so sad.

hillbillyjim on January 26, 2012 at 5:35 PM

“In three years, our partnership with the private sector has already positioned America to be the world’s leading consumer of food stamps and cheap Chinese products,” he said.

BobMbx on January 26, 2012 at 5:48 PM

Hard hat dude on the right looks like he just threw up in his mouth a little.

Christien on January 26, 2012 at 3:42 PM

yes indeed lol

sadsushi on January 26, 2012 at 5:58 PM

And this guy’s THIS close to getting re-elected.

We really are living in a mad, mad, world.

Cleombrotus on January 26, 2012 at 6:06 PM

So I guess you’ll be slamming Mitch Daniels for heavily supporting the very same project, right?

Right?

Any minute now.

Right?

Constantine on January 26, 2012 at 7:38 PM

So I guess you’ll be slamming Mitch Daniels for heavily supporting the very same project, right?

Right?

Any minute now.

Right?

Constantine on January 26, 2012 at 7:38 PM

Just another reason why I never supported him and another reason why he didn’t run. After his term expires, he might be running for the third party that used to be known as the gop.

AH_C on January 26, 2012 at 7:46 PM

Picking losers………….Winning

POTUS

antipc on January 26, 2012 at 9:41 PM

The Obama Administration, for political reasons, invested over a hundred million in taxpayer dollars in a company which couldn’t pay its bills, wouldn’t meet its legal requirements, and possibly misled investors, because it was in the business of developing batteries for cars that nobody wants to buy.

What could go wrong?

Dana on January 26, 2012 at 10:00 PM

I just don’t understand this at all. I mean DOE is headed by a former professor who won a Nobel Prize.

Over50 on January 26, 2012 at 11:15 PM

So I guess you’ll be slamming Mitch Daniels for heavily supporting the very same project, right?

Right?

Any minute now.

Right?

Constantine on January 26, 2012 at 7:38 PM
Yes he was wrong for supporting the project.

newportmike on January 26, 2012 at 11:49 PM

Yep he was wrong to support anything Obummer wants, and I hope the other Repubs get a reinforcement reminder. Thanks Constantine, glad to see that a Repub slipped up.

malkinmania on January 27, 2012 at 6:49 AM

Daniels’ administration granted the firm, which makes its batteries in Indiana, more than $7 million in tax credits, and praised it effusively.

Two thoughts.

First, isn’t a Governor supposed to attract and “verbally” praise the possibility of new jobs to his/her state? Speaking “verbally” costs the state of Indian virtually NOTHING.

Second, $7M in tax incentives, i.e. not charging EnerDel taxes, did not cost Indiana much either. If EnerDel did not exist, they also would not have gotten $7M from EnerDel.

This is SIGNIFICANTLY different than the Energy Department handing $118M in cash to EnerDel.

By the way, Indiana and many other states were the recipients of Obama cash going to the existing car industry, as well. To remain “Obama Pure”, are all of these Governor’s supposed to kick the auto industry to the curb sending them packing somewhere else?

Carnac on January 27, 2012 at 8:54 AM

Carnac on January 27, 2012 at 8:54 AM

My first thought as well.

Tax credit vs. actual cash? No brainer.

IrishEyes on January 27, 2012 at 11:58 AM

The Obama version of the Madden Curse.

jnelchef on January 27, 2012 at 12:15 PM

Comment pages: 1 2