Confirmed: Taxpayers expected to get little-to-nothing back on Solyndra’s $500 million+ loan guarantee
posted at 12:41 pm on October 18, 2012 by Erika Johnsen
Not really a surprise — we all pretty much expected that we wouldn’t be getting back the money the Obama administration so magnanimously “invested” into the now-failed solar company on our behalf — but as the company waits to get its bankruptcy plan approved, it looks like even the investors higher up on Solyndra’s payback-priority list won’t be breaking even. Why am I not comforted? Via Bloomberg:
Solyndra LLC, the solar-panel maker that received a $535 million U.S. Energy Department loan guarantee before going bankrupt, won’t be able to provide lenders ranking ahead of the government with a full recovery, the company’s financial adviser Eric Carlson said today. …
Under the solar-panel maker’s restructuring plan, the government might get little to nothing for its $528 million claim from the loan guarantee. The government is projected to recoup at most 19 percent on $142.8 million of the loan and probably nothing on the remaining $385 million, according to the disclosure statement, a description of the plan.
All creditors, including the government, could see a full recovery from a $1.5 billion lawsuit the company filed against Chinese solar-panel makers last week, said Solyndra attorney Debra Grassgreen. Solyndra claimed the Chinese manufacturers conspired to fix prices and flood the U.S. market with solar panels at below-cost prices forcing it out of business. Chinese solar-panel makers have said the allegations are “baseless.”
So, We The Taxpayer might stand a chance of getting that money back into the federal coffers, if the company is successful in their suit accusing China of doing too much to subsidize their own solar market, a.k.a., offering too many means of government special treatment the likes of which Solyndra itself was a recipient. …There is just nothing about this green boondoggle that feels right.
Speaking of dodgy renewable-energy dealings, here’s more on the cronyism inherent in the Obama administration’s green-favoritism game, courtesy of recently bombed A123 Systems via the Washington Guardian:
Even as advanced battery maker A123 Systems struggled for financial viability, it played the Washington insider game, where political money and access go hand in hand.
The Massachusetts firm dished out nearly $1 million to hire a powerhouse lobbying firm with close ties to President Barack Obama between 2007 and 2009, and two of its top executives made personal donations to several high-profile Democrats in Congress as it won federal funding for its efforts to build the next generation of lithium batteries for electric vehicles.
And its president and CEO, David Vieau, an early financial backer of President Barack Obama, scored five invitations to the White House in 2009 and 2010, including a meeting he attended with the president, White House logs show. And when the company opened a new Michigan plant, Obama made a high-profile call to congratulate.
Aren’t all of these waste/fraud/abuse revelations just so much fun? It’s becoming increasingly apparent that “green energy” is just the Obama administration’s all-too-politically-convenient cloak for business-as-usual, ramped up a notch.
Breaking on Hot Air