Great moments in gov’t-subsidy history …
posted at 10:37 am on November 18, 2012 by Ed Morrissey
Bankrupt DoE grant recipient A123 got almost a million dollars from the Obama adminstration’s green-tech stimulus on the same day it filed for bankruptcy — a bankruptcy driven by $55 million in liabilities for producing defective battery packs, no less:
Battery maker A123 Systems received a $946,830 check from the U.S. Department of Energy the same day it filed for Chapter 11 bankruptcy protection last month, according to a letter released by two Republican senators who say the Obama administration is funding failed clean-energy companies.
Republican Sens. Charles Grassley of Iowa and John Thune of South Dakota on Friday released a Wednesday letter from Eric Pyenson, A123 vice president and general counsel. …
A123 filed for bankruptcy protection last month after saying it would have to spend $55 million to replace defective battery packs that forced start-up electric-car maker Fisker Automotive, also a recipient of U.S. assistance, to recall its $100,000-plus Karma electric car.
Want more good news? A123 may end up getting even more taxpayer cash despite its bankruptcy:
The Waltham, Mass.-based company with plants in Livonia and Romulus also said it may seek additional payments from a $249.1-million Energy Department grant awarded in 2009. A123’s Oct. 16 check was the latest payment as part of the original grant, which is distributed periodically as the company meets certain benchmarks.