Skip to comments.Solar Firm That Received $1.2 Billion Federal Loan Plagued by Financial Problems (SunPower Corp.)
Posted on 10/12/2011 5:39:02 PM PDT by SeekAndFind
With the Solyndra scandal still swirling, the Obama administration is under pressure to reveal the financial condition of the solar companies that received $4.75 billion in similar federal loan guarantees on the last day of the program.
Republican lawmakers on two House committees are seeking details about the loans given to First Solar, SunPower Corp. and ProLogis. Of those three companies, troubling financial revelations have emerged about SunPower, which received a $1.2 billion loan, more than twice the money approved for Solyndra, which filed for bankruptcy last month after receiving a $528 million loan.
The Energy Department says on its website that the $1.2 billion loan to help build the California Valley Solar Ranch in San Luis Obispo County, a project that will help create 15 permanent jobs, which adds up to the equivalent of $80 million in taxpayer money for each job. But the Energy Department stands by the project.
This project underwent many months of rigorous technical, financial and legal due diligence by career employees in the DOE loan program, Energy spokesman Damien LaVera said to FoxNews.com. It was approved for one reason only: because it meets all the requirements of the program helping America win the clean energy race and create entire new industries for American workers.
In April, the Energy Department gave SunPower conditional loan guarantee, even though the company was receiving financing in the capital markets. Shortly after the conditional guarantee, French energy giant Total bought a majority ownership in SunPower and extended a $1 billion credit line to the company.
But SunPower posted $150 million in losses during the first half of this year and its debt is nearly 80 percent higher than the market value of all its outstanding shares. The company is also facing class action lawsuits for misstating its earnings.
(Excerpt) Read more at foxnews.com ...
giving massive amounts of cash to unprofitable companies is always a bad idea. Where is the incentive for them to do better if the loans are guaranteed by the taxpayer?
Another example of why any plan to reduce debt or balance the budget must not provide for an increase of even one more penny to the federal government.
Any belief that there are effective checks and balances is a naive dream.
The Washington crooks will make any new money disappear just like the last $14 trillion.
What race??? I wish at least one newsie would ask that question when some spokesclown makes such a vapid claim.
RE: It was approved for one reason only: because it meets all the requirements of the program helping America win the clean energy race and create entire new industries for American workers.
And therein lies the problem. There was NOT a good business case for private capital to fund their venture.
In comes Obama’s team who gets to decide that tax payer money should be used to fund this idealistic venture WITH LITTLE CONSIDERATION FOR BUSINESS VIABILITY.
Result: Probably another Billion down the drain.
And Obama has the gall to lecture the wealthy that they’re no paying their fair share. TSK TSK TSK.
Some one is going to start putting the pieces together that began in 2008 when both Obama and Axelrod were involved in the effort to help Chicago-based Exelon take over NRG.
if you’re Pelosi, that’s SON POWER
All it cost them was $36,000 in political contributions for the 2010 election cycle. Not a bad return.
I just read today that “most americans”, whoever the hell they are, want Barry’s “jobs bill” passed. I guess it’s true. You can’t fix stupid.
“why that last day, somehow, you had everything you needed and you didnt have it over a period of time before?”
Excellent question. The “due diligence” magically finished up on all these things at the same time, just the moment it was needed.
GeorgeIV got 168,000.00 in lobbying fees.
HMMM Obama and Lobbyist????
(D)istrict of (C)riminals running the country.
The energy loans were rushed through to ensure that kickbacks were available for the Food Stamp President’s campaign fund. Zero’s lackeys figured out that the infamous jobs bill was headed for the cemetery and the only way to get a large amount of payola into his campaign fund was to push those loans out the door in spite of the possible uproar.
How much of the companies funds went to the Democratic coffers. What are the names of the officers and private financiers? How much and to whom did they contribute funds?
The clown posing as POTUS has seriously damaged the country.
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