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Solyndra 2.0 Nears Bankruptcy As Bonds Collapse To Record Lows

Submitted by Tyler Durden on 08/12/2015 17:10 -0400

Two weeks ago we introduced you to Abengoa - the Spanish renewable-energy company - that received over $230 million in US taxpayer subsidies and loos set to become Solyndra 2.0. While all the politicians have taken their pound of flesh, Abengoa bonds have collapsed for five days in a row, now trading at record lows around 45 cents on the dollar - flashing the bankruptcy imminent light. Solyndra 2.0?

Abengoa 2020s fell over 5 points today to around 45 cents on the dollar...

As we concluded previously, the company’s political connections are emblematic of an industry that remains reliant on taxpayer subsidies, according to William Yeatman, a senior fellow specializing in energy policy at the Competitive Enterprise Institute.

“It could not be more clear that this company could not survive without access to government favors from political friends,” Yeatman said, citing its reliance on the Renewable Fuels Standard and continued financial support from DOE.

“Alas, the same can be said for the green energy industry as a whole, which would fast wither and die absent a steady diet of taxpayer and ratepayer subsidies,” Yeatman said.

In addition to its DOE subsidies, Abengoa received $185 million in financing in 2012 and 2013 through the U.S. Export-Import bank as former New Mexico Gov. Bill Richardson (D) sat on the boards of both the federal agency and the company it was subsidizing.

Despite extensive federal support for the company, Alhalabi described a culture of disregard for workplace safety and environmental contamination. Concern over high costs has led to lackluster engineering work at the company’s Mojave facility that could result in an “environmental disaster,” he said.

Solyndra 2.0? Another one off? Or another symptom of the Oligrachic ignorance of where the money comes from...It appears US taxpayers can kiss that money goodbye...

“The equity increase gives the impression that the company urgently needs cash,” said Fischer. “They’ve not done enough to win back investors’ trust.”

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Wed, 08/12/2015 - 17:23 | 6420009 SSRI Junkie

they needed to go to spain to find another green scam to finance...unfuckingbelievable

Wed, 08/12/2015 - 17:26 | 6420020 swass

BTFD.

Wed, 08/12/2015 - 17:30 | 6420037 free_as_in_beer

That does not apply to debt.

Wed, 08/12/2015 - 17:35 | 6420058 Wary Hanger

YES We did!

https://www.youtube.com/watch?v=wg5zB2jc9jY

Wed, 08/12/2015 - 17:43 | 6420089 kaiserhoff

But solar energy is just two years away from major breakthroughs in efficiency and storage capacity...,

and always has been, and always shall be.

Wed, 08/12/2015 - 19:41 | 6420369 nmewn

Luddite! Heretic! All they need is moar printing and devaluation to make it viable!...ROTFLMAO!

Wed, 08/12/2015 - 20:03 | 6420438 Stormtrooper

I like your flag. I wonder if I could find one to fly beneath my flag of the sovereign state of Ohio.

Wed, 08/12/2015 - 17:27 | 6420027 HonkyShogun

Is there anything the Bongo touches that doesn't turn to shit?

Wed, 08/12/2015 - 17:32 | 6420050 junction

Miss Hillary, but she was already shit.

Wed, 08/12/2015 - 17:33 | 6420057 BandGap

Welfare for the world.

Wed, 08/12/2015 - 17:57 | 6420130 drendebe10

.... another in a long string of great outcomes of the bullshit policies of the fudge packer and the progressive liberal democrap miedras....

Wed, 08/12/2015 - 19:20 | 6420321 Lumberjack

They already scammed the folk in Spain, just like Santander (Blythe Master old haunt)... and moved to the US of A.

http://dailybail.com/home/busted-deutsche-bank-raided-in-carbon-tax-frau...

And DB is vigirously defending SUNE et.al... Fucking Rent Seeking Gypsies.

Wed, 08/12/2015 - 20:19 | 6420497 Lumberjack

Update:

Unholy Alliance: Blythe Masters Named Chairman Of Subprime Auto Lender

http://www.zerohedge.com/news/2015-07-15/unholy-alliance-blythe-masters-...

Earlier today, on the way to presenting data from the NY Fed which shows that auto loan rejection rates hit an all-time low of just 3.3% in June, we said that if one wanted to understand the circumstances that led to the housing bubble in the US, a good place to start would be the modern day auto loan market where the "originate to sell" model that characterized pre-crisis mortgage lending is alive and well. We also recommended reading a bit about the history of the GSEs, and taking "a hard look at Blythe Masters and the wizards who created the credit default swap."

We’re not exaggerating when we say that just minutes after we penned those words - which drew an explicit link between the dynamics driving the auto loan market, the "originate to sell model" that fed Wall Street’s pre-crisis securitization machine, and the financial weapons of mass destruction that Blythe Masters helped to create - the following headline hit the wires:

BLYTHE MASTERS NAMED CHAIRMAN OF SANTANDER CONSUMER USA HOLDING
That’s right, dear readers. The mother of the credit default swap is now the chairman (err.. chairwoman) of Santander Consumer, the largest subprime auto lender in the country.

You cannot make this stuff up.

For those unfamiliar with Santander Consumer, they are the lender who, as of Q4 2014, accounted for 60% of the subprime auto market. Here’s a peek into the company's recent trials and travails:

Santander Consumer — a unit of one of only two banks to receive the dubious honor of failing the Fed’s stress tests yesterday and the market leader in subprime auto lending — allegedly ignored a law that requires lenders to obtain a court order before repossessing cars from members of the military and will now pay $9.35 million to settle the issue with the government. Apparently, Santander illegally repoed nearly 800 vehicles from active service members over the course of 5 years and then attempted to extract fees from some 350 additional soldiers in connection with repossessions the bank didn’t even execute.

This is the same Santander Consumer that was subpoenaed last year by the Justice Department in connection with its packaging of subprime auto loans into ABS and whose lending practices also got the attention of the New York Dept. of Consumer Affairs.

Don’t think for a second that any of this is slowing down the Santander Consumer subprime auto securitization machine though. The company, which leads all other lenders when it comes to the total amount of subprime auto loan debt outstanding, has already done a deal this year worth $1.2 billion which accounts for nearly 25% of all subprime auto ABS issuance YTD.

Wed, 08/12/2015 - 20:26 | 6420510 Lumberjack

Former FDIC Head Sheila Bair Resigns From Parent Of World's Largest Subprime Auto Lender

http://www.zerohedge.com/news/2015-07-30/former-fdic-head-sheila-bair-re...

Just days after Blythe Masters took up her role as Chairman of Santander Consumer - the world's largest subprime auto lenders; former FDIC head Sheila Bair has resigned her position on the board of Banco Santander citing excess "travel" as a reason. One cannot help but wonder if the clash of the titans was too much, if the embrassment of a failed stress test was unbearable, or if Ms. Bair sees the rapidly approach light at the end of the tunnel of subprime lending for what it is... a bigger train that 2008's.

As The FT reports,

Ms Bair wrote in a letter to the Systemic Risk Council, a regulatory advocacy group, whose chairmanship she is also giving up:

Though I have very much enjoyed my service on the board of this historic banking institution, the frequent trips to Spain are time-consuming and, I fear, would interfere with my responsibilities to the college.

The departure is expected to be announced by Santander as soon as Friday and becomes effective at the end of the third quarter, according to people familiar with the matter. Santander declined to comment.

* * *

One wonders why - apart from her travel excuse...

Blythe Masters taking over a sub...?

Wed, 08/12/2015 - 17:27 | 6420026 Rusty Diggins

Every time I see Billies name I shed tears because I will never be but a shadow of the sleazy, fat, corpulent, double dealing pirate he is. All my learnings amount to nothing.

Wed, 08/12/2015 - 17:38 | 6420073 Trucker Glock

Holy fuck, this shit pisses me off. Why in the fuck is .gov lending money to ANYONE, let alone a foreign company. American voting public are fucking stupid. But, why should I care? My tax dollars are just paying interest on the deficit spending from the 80s or 90s. Today's waste os funded by future generations. Poor bastards are fucked beyond belief.

Wed, 08/12/2015 - 17:52 | 6420118 NoWayJose

The Saudis are not just attacking shale oil - they want to take out renewable energy too.

Wed, 08/12/2015 - 18:11 | 6420173 Anopheles

I always laugh at the green weenies that keep telling me how necessary and "affordable" it is to use renewable everything.

Well, here's MORE proof, that to actually go green means a SUBSTANTIAL reduction in our (economic) standard of living. Using renewables is EXPENSIVE. Are people so blind that they think we can pay 5 times as much for energy and it won't affect EVERYTHING we buy, and do?

Every single thing we buy and have has a SUBSTANTIAL energy component. If those go up several times, don't ya think it will affect our standard of living?

Wed, 08/12/2015 - 19:06 | 6420298 Setarcos

Nothing can replace the energy density of oil, not even top quality coal, which is also harder and harder (more costly) to extract.

And ALL so-called "alternatives" primarily depend on oil, e.g. mining the raw materials, maufacture and transport. With most there is probably a negative return on energy input, perhaps all if total inputs were accounted for.

Wed, 08/12/2015 - 18:42 | 6420244 CHC

Trump is right - the United States is run by complete idiots. Of course I've had that opinion for years and didn't need Trump to validate it for me, but it does feel good hearing someone else say it to.

Wed, 08/12/2015 - 22:19 | 6420888 redd_green

yeah, its good to hear a candidate really say it (Ron Paul did in not so many words). Too Bad he won't fix anything. The corruption is too deep and too widespread.

Wed, 08/12/2015 - 19:10 | 6420306 Fuku Ben

I'll start documenting a nice long list with references. It will summarize all the creative ways everything will be stolen from everyone when this game of financial musical chairs ends, the music stops and the whole thing collapses. Don't believe for a second that you'll be safe or on a winning team.

Those that don't assist in changing the tune before it ends will find out the hard way everyone will be left holding the bag. An empty canvas Federal Reserve bag. Which is also not your property and will be taken too.

https://img0.etsystatic.com/061/0/6423732/il_fullxfull.790554272_qwgc.jpg

Here are a few things to read through or further investigate as they may relate to you and your families:

* Unfunded Pensions - Public (Military & Civilian) & Private (Many Trillions Globally)
* Junk Bond Defaults
* Derivatives
* Government Bond Defaults
* All Bank Deposits (Retail & Investment) - (Just Read Banking Documents Pertaining to the Accounts and Any Related Insurance Coverage, Recent Legislation & Recent Court Rulings)

http://www.zerohedge.com/news/2015-07-25/junk-bond-heatmap-has-not-been-...

http://www.zerohedge.com/news/2015-08-03/puerto-rico-makes-only-1-requir...

http://www.zerohedge.com/news/2015-07-24/add-junk-bonds-growing-pile-con...

http://www.zerohedge.com/news/2015-08-03/puerto-rico-makes-only-1-requir...

http://www.zerohedge.com/news/2015-07-18/pension-shocker-plans-face-2-tr...

Wed, 08/12/2015 - 19:15 | 6420314 Lumberjack

WTF happened to SUNE/TERP/GLBL today? Fucking PPT. No need of this shit.

Wed, 08/12/2015 - 19:44 | 6420378 roddy6667