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SOLAR COMPANY that received Obama administration backing closes its doors – The Hill’s E2-Wire

August 31, 2011

President Obama, center, is given a tour of Solyndra by Executive Vice President Ben Bierman, right, as Chief Executive Officer Chris Gronet, left, walks alongside at Solyndra Inc. in Fremont, Calif., May 26, 2010. The Energy Department in March 2009, announced its intention to award the solar panel manufacturer a $535 million loan guarantee before receiving final copies of outside reviews needed to vet the deal. (Paul Chinn/Pool via Getty Images)

Solar company that received Obama administration backing closes its doors

By Andrew Restuccia – 08/31/11

A California-based solar company that received a $535 million loan guarantee from the Obama administration announced Wednesday that it will shut down.

The company, Solyndra Inc., said Wednesday it would suspend its manufacturing operations and lay off 1,100 employees effective immediately. The company said it intends to file a petition for Chapter 11 bankruptcy protection.

“Regulatory and policy uncertainties in recent months created significant near-term excess supply and price erosion,” Solyndra CEO Brian Harrison said in a statement. “Raising incremental capital in this environment was not possible. This was an unexpected outcome and is most unfortunate.”

The announcement comes at a tough time for the solar industry, which has faced free-falling solar panel prices.

But the Obama administration has doubled-down on its investments in the industry. The Energy Department finalized last week an $852 million loan guarantee for a separate California solar project sponsored by NextEra Energy. Earlier in August, DOE finalized a $197 million loan guarantee for solar manufacturing facilities in Oregon and California.

Solyndra received the $535 million stimulus loan guarantee from the Energy Department in 2009 to help finance the construction of a new plant to manufacture solar panels.

The Energy Department said Wednesday that it is “disappointed” that Solyndra is shutting down its manufacturing operations, but added, “We continue to believe the clean energy jobs race is one that America can, must and will win.”

via Solar company that received Obama administration backing closes its doors – The Hill’s E2-Wire.

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2 Comments
  1. bob permalink
    August 31, 2011 1:55 PM

    yes let’s take the governments money. Show that we tried to do something. then pocket the cash. File chapter 11 so that the governement can’t come back after it’s money.

    Freaking brilliant..why didn’t I think of it?

  2. August 31, 2011 9:58 PM

    Hmmmm best case scenario the company would hire 4,000 people for $553 million in government guaranteed loans. That works out to about 138,000 for each job created. That is the best case scenario.

    Worst case scenario . . . well read the article above. And who said Obama doesn’t understand economics. IDIOT!

    If this was viable people could make money at it and there would be no need for government guaranteed loans. There is no viable business and therefore no real jobs in the green businesses which is why no real investors are interested in these bogus enterprises.

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