“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.
Its incredulous that the government officials knew very well that this business was doomed before the funds were issued. I spoke with a colleague in the clean tech space this week who told me that he personally advised government officials that the existing investors had already given up on the company and that it would certainly fail. He was concerned about misrepresentation incrimination. The officials didn’t care at all that the tax payer money would be wasted (or worse, knew that it was to be used to pay off cronies).
This was a scam decided on from the very beginning. They never intended to build solar panels but instead to take taxpayer money being wasted on “Green” Energy and divid it among as many Obama supporters as possible. The unions won, the investors won, and a few others perhaps but the big loser was us, the taxpayers. This badly needs to be prosecuted by someone else if we can’t trust the Justice Department.