Solyndra sold assets cheap for fast cash

Washington Times ^ | 2/8/12 | Jim McElhatton

[Nachum]

Fast running out of money, solar-panel maker Solyndra LLC last summer sold off nearly $60 million worth of inventory for less than $20 million in cash to a newly formed corporate entity closely tied to the company’s biggest investors, records show. Backed by $535 million in federal loan guarantees but burning through the little cash it had left, Solyndra made its first sale in late July to a corporate entity that had been formed just a day earlier. Three more transactions followed over the next few weeks with the same buyer, Solyndra Solar II.

[Nachum]

The list, Ping

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[ColdOne]

Unreal, and this will be another non-event for msm and GOP.

[Psycho_Bunny]

And we’ll never see a perp walk...

[hal ogen]

Sick...pathetic...corruption.

[C210N]

The ONLY difference between this and the days of Ghengis Kahn and roaming hordes when villages would be subjected to rape and pillage is.... the timeframe. The taxpayers playing the role of villagers.

[43north]

The roaming hordes will come after the feral gubbmint starts to issue IOU’s for welfare payments.

[haroldeveryman]

“Solyndra had sold off a total of $58.1 million worth of inventory for $17.5 million...............The test under the bankruptcy code is whether the sale was for reasonably equivalent value and selling inventory at such a huge discount raises real concerns”

I don’t understand what they’re all surprised about. At the time bankruptcy was declared, news reports said that the technology used by Solyndra was obsolete, and that the Chinese could sell the same solar panels at a fraction of the cost to Solyndra.

Another problem Solyndra had was enormous overhead in the way of a palatial office building built with over a hundred million dollars in union wages. Maybe the lesson to learn here is that the Chinese government is much more scrupulous than the Democratic party when it comes to handling other people’s money.

[Oldeconomybuyer]

Jail time.

[SecondAmendment]

I thought the buyer was Bain Capitol ..

[Iron Munro]

SCAM ALERT !

[X-spurt]

Regretably, it appears our friends Bain Cap were not one of them.

[Fran B]

Where did the cash go?

[cpdiii]

Timeline
1. Campaign Bundlers for Obama give the Obama campaign a lot of money.
2. The same people then start a Green Energy Company named Solydra.
3. The same company obtains a 500million dollar loan from the federal government, also known as the taxpayer.
4. The company burns through 1/2 billion dollars and needs money.
5. The campaign bundler then give them a loan but the government also known as the taxpayer becomes not the first in line for payment but second in line in the case of bankruptcy. This was agreed to by our government and signed off by the Obama Department of Energy.
6. Solyndra is going bankrupt and sells off inventory at 33 cents on the dollar to the same people that set up and financed the company. 7.
Solyndra goes bankrupt, the number two creditor gets paid off first. The number one creditor (also known as the taxpayer) gets zero.

The following from the Casablanca explains the Obama Administration.

Rick: How can you close me up? On what grounds? Captain Renault: I'm shocked, shocked to find that gambling is going on in here! [a croupier hands Renault a pile of money] Croupier: Your winnings, sir. Captain Renault: [sotto voce] Oh, thank you very much. [aloud] Captain Renault: Everybody out at once! --------------------------------------------------------------------------------

[Cincinatus' Wife]

....”Todd Zywicki, bankruptcy professor at the George Mason University School of Law, said it’s not unusual for troubled companies to sell off assets to improve liquidity. But he said the inventory sales figure cited by Solyndra — $58.1 million in inventory for $17.5 million in cash — seems unusual.

“The test under the bankruptcy code is whether the sale was for reasonably equivalent value and selling inventory at such a huge discount raises real concerns,” he said. “If Solyndra Solar II is owned or controlled by any insiders or anything like that, then it becomes even more suspicious.”....

[unixfox]

Solyndra made its first sale in late July to a corporate entity that had been formed just a day earlier. Three more transactions followed over the next few weeks with the same buyer, Solyndra Solar II.

What a great idea! Just form new companies and sell the assets over and over and over and over...

I would call this fraud but when the government is involved it's called an "investment"

[Rifleman]

Isn’t this called a “bust out” when the Mob does it? Take over a company, borrow all the money you can, loot it, sell the furniture and leave an empty building.

[MarkL]

This is right out of the "mob handbook," as documented in the movie "Goodfellas." When the mob "partners" with a business, they open up every possibly line of credit that business can get, then they buy things and sell them at a "loss," since ir was free for them and nobody's going to pay it back anyway. Once there isn't a penny left, the business gets torched. Or in the case of Solyndra, they restructure all the loans in ways that were probably illegal so that during the bankruptcy, the friends of the regime get even more money, while the tax payer gets screwed over. Is anybody else surprised that a branch of Holder's DoJ raided Solyndra to pull all the incriminating evidence out to "protect the evidence" during the impending investigations which will never go anywhere?

But this shouldn't be surprising, given the make up of "The Chicago Mob on the Potomac."

Mark

[MarkL]

Great minds, and all that... See my post, just after yours!

Mark

[saleman]

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