Democratic convention changes renew concerns about financial risk to backers (RATS in default?)

Fox News ^ | 6/30/12 | Joseph Weber

[Libloather]

Democratic convention changes renew concerns about financial risk to backers
By Joseph Weber
Published June 30, 2012
FoxNews.com

The decision this week by the host committee of the Democratic National Convention to scrap a major event has sparked new concerns about the committee’s financial situation -- including a $10 million line of credit and a utility company’s connection to the deal.

Stimulus-backed Duke Energy Corp. last year agreed to guarantee the line of credit for the party affair. This decision was a big help for the organizers, as the credit line was required by the Democratic National Committee. But it also came with a risk for Duke Energy's shareholders.

If the host committee defaults, the shareholders, and not ratepayers, would be on the hook for the loss.

“It’s clear the convention is facing some economic uncertainty,” said Tom Borelli a senior fellow at the conservative FreedomWorks, who complained that the deal has left shareholders at risk even though they did not make the decision to guarantee the credit line.

[Libloather]

AND Hussein will lose NC. That's a shame.

[FlingWingFlyer]

She also said fundraising efforts are on track and reiterated that logistics, including access to public transportation, was the reason for moving the opening day event from the Charlotte Motor Speedway to downtown.

I was wondering why Humpy Wheeler was trying to raise 40 million from NASCAR fans for the DemocRATS. I guess this answers my question.

[hoosiermama]

Share holders should be upset.

[MissMagnolia]

No wonder the country is broke - they can’t even successfully manage their own convention.

[capydick]

Can the argument be made that the line of credit guaranteed by Duke Energy was funded by stimulus funds?

[Rapscallion]

It looks to me like the Fast and Furious drug money has dried up and the RAT Party is suffering.

[rhinohunter]

Yep... I dumped my shares last week.

[SunkenCiv]

Thanks Libloather.

The decision this week by the host committee of the Democratic National Convention to scrap a major event has sparked new concerns about the committee's financial situation... Stimulus-backed Duke Energy Corp. last year agreed to guarantee the line of credit for the party affair... If the host committee defaults, the shareholders, and not ratepayers, would be on the hook for the loss... the deal has left shareholders at risk even though they did not make the decision to guarantee the credit line.

[LtKerst]

Duke Energy Corp?....
Duke Energy Corp?.....
This name brings back memorys....Wasn’t this Company in Cahoots with Slick Willy Back then?

Duke/Clinton....anyone?

[LtKerst]

Duke Energy Corp?....
Duke Energy Corp?.....
This name brings back memorys....Wasn’t this Company in Cahoots with Slick Willy Back then?

Duke/Clinton....anyone?

[Tax-chick]

It will be another bloodbath for state-level Democrats. *snicker*

[MulberryDraw]

“Nobody could have assumed an Environmental Protection Agency that would ban new coal plants and shut down those that needed improvement.”

Really? Candidate Obama promised to bankrupt companies that built new coal plants.

[Brilliant]

I am not sure why they decided to do the Convention in Charlotte. If they needed NC, they should have just fired the buffoon, Biden, and replaced him with a much more reputable VP who could win in NC, such as John Edwards.

[Excuse_My_Bellicosity]

At this point in 2008, they were up $100 million. This tells me two things:

1. The Demonrats, who typically sloth their way through life and occupy the lower-level non-vital jobs, are the first to get chopped when a company has to cut budgets. It's hard to be politically motivated, contribute money, and volunteer your time to campaigns when you're barely living subsistence level.

2. Zero is such a foreign policy amateur that he's burned all his bridges with his foreign contributors. They hit the bricks and took their $10-$20 contributions with them.

[Brad from Tennessee]

[The decision this week. . .to scrap a major event has sparked new concerns about the committee’s financial situation — including a $10 million line of credit and a utility company’s connection to the deal.]

They can raise $10 million in a bad week. What if this is a red herring to help conceal the billions that have been siphoned from the Stimulus, the Green Energy bust out, the BP Gulf spill settlement, etc. ?

[scooby321]

Democrats are in serious trouble if they can fund their convention

It maybe a slaughter in 2012.

Maybe wishful thinking but I need something I haven't been able to think sense 10:15 Thursday.

[hoosiermama]

Go to alamo girl.com AG has collected all the good on Hill/Billy.

Link is on the top right of FR front page.

[hoosiermama]

oops top left.

[pistolpackinpapa]

Your Post #13 is funny.

[moovova]

I had a lot of respect for Humpy Wheeler’s business acumen when he took Concord to the cleaners a few years back over a favorable zoning Concord abruptly took away from him.

But hearing this...another hero gone.