Another Popular Name Emerges In The Solyndra Scandal

Tyler Durden's picture

This scandal is rapidly becoming the gift that keeps on giving...

Solyndra Offered $535 Million Loan Guarantee by the U.S. Department of Energy


Fremont, CA, March 20, 2009 – Solyndra, Inc. announced today that it is the first company to receive an offer for a U.S. Department of Energy (DOE) loan guarantee under Title XVII of the Energy Policy Act of 2005.  Solyndra, a Fremont, California-based manufacturer of innovative cylindrical photovoltaic systems, will use the proceeds of a $535 million loan from the U.S. Treasury’s Federal Financing Bank to expand its solar panel manufacturing capacity in California.


“The leadership and actions of President Barack Obama, Energy Secretary Steven Chu and the U.S. Congress were instrumental in concluding this offer for a loan guarantee,” said Solyndra CEO and founder, Dr. Chris Gronet.   “The DOE Loan Guarantee Program funding will enable Solyndra to achieve the economies of scale needed to deliver solar electricity at prices that are competitive with utility rates.  This expansion is really about creating new jobs while meaningfully impacting global warming.”

Designed specifically for commercial, industrial and institutional rooftops, Solyndra’s proprietary photovoltaic (PV) systems generate significantly more solar electricity per rooftop at a lower installed cost than conventional flat panel PV technologies. Further, Solyndra’s PV systems are fast and economical to install due to the simple horizontal mounting and unique air-flow properties of the solar panels. Solyndra’s panels are fully certified for U.S. and international use and have been commercially shipping since July 2008.


The guaranteed loan, expected to provide debt financing for approximately 73% of the project costs, will allow Solyndra to initiate construction of a second solar panel fabrication facility (Fab 2) in California. On completion, Fab 2 is expected to have an annual manufacturing capacity of 500 megawatts per year.  Solyndra and DOE will finalize the transaction upon completion of definitive documentation and satisfaction of certain conditions precedent.  Over the life of the project, Solyndra estimates that Fab 2 will produce solar panels sufficient to generate up to 15 gigawatts of clean, renewable electricity–enough to avoid 300 million metric tons of carbon dioxide emissions.  Further, Solyndra estimates that the construction of this complex will employ approximately 3,000 people, the operation of the facility will create over 1,000 jobs, and hundreds of additional jobs will be created for the installation of Solyndra PV systems, in the U.S.


“DOE, in consultation with independent consultants, performed a thorough investigation and analysis of our project’s financial, technical and legal strengths,” said Dr. Kelly Truman, Solyndra’s Vice President of Marketing, Sales and Business Development.  “We are proud to be the first company to pass this comprehensive review, and we would like to acknowledge the exceptional efforts of the staff of the DOE Loan Guarantee Program Office.” 


Goldman, Sachs & Co. acted as exclusive financial advisor to Solyndra in connection with this loan guarantee application.

Anywhere you look... Goldman has already been there.



And in tangential news, attached is the just filed engagement letter with which a bankrupt Solyndra will retain Imperial Capital at the cost of $150,000 per month (this is cash that is immediately leaving the estate, thus minimizing recoveries to US taxpayers), a $1 million confirmation fee, a $1 million sale fee (the two are not exclusive), a 1%/3%/5% financing fee (i.e., Imperial arranges follow through financing, although good luck with that), and so on. In other news, should this bankruptcy stretch for more than the usual 1 year period from filing to emergence, US taxpayers will be on the hook for another roughly $3 million, in order to hire a banker whose ultimate value added will be an "orderly" liquidation of the company. What is amusing is that $150k/month was the going rate when bankruptcy firms still had business, and it was a competitive field, unlike now, when even a $10 million debt side assignment gets pitchbooks from Greenhill, Lazard, Rothshild and Blackstone. Perhaps the judge on the case will be so kind to show some fiduciary responsibility when it comes to disbursing taxpayer capital to retain a useless advisor.... even more so that Imperial somehow believes that it should not even be subject to an expense "(including, without limitation, reasonable attorneys’ fees, travel, lodging and meal expenses, messenger services, duplicating services and other customary expenditures)" cap: gotta love using those G-VI jets on the taxpayer's dime.


h/t Jeff

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HoofHearted's picture

It's too good to be true...or too evil to be true...or both.

Fukushima Sam's picture

Dear Goldman Sachs,

Please remove your blood funnel from our collective asses.  Our money is almost gone anyway.  Your prompt attention to this matter would be most appreciated.

Thank you in advance,


New_Meat's picture

Dear Steevie Chu, your "nobel prize" is as valuable as is  your president's.  Stop trying to paint all roofs white (OT-How racist is that?), stop funding migrant-bird homogenizors, stop putting toxic wastes through government subsidized fabz into the ground.

Stop building solar panels that cost USD 6 and sell at USD 3.

Stop feeling good for your "efforts".

- Ned

{not even the snip of a dream that the DoE could be economically 'effective.'}

samslaught's picture

this whole deal stinks.  There are thousands of businesses out there that just need $25,000 - $50,000 maybe $100,000 to take things to the next level.  Real businesses that started in someone's basement or garage.  Proven success through hard work, trial and error, blood and tears.  This is how a business is created and grows.  How many times do the central planners of the world have to fail before people wake up.

FEDbuster's picture

Obama's Teapot Dome, couldn't happen to a nicer guy.

Richard Weed's picture

The squid that keeps on giving... I feel so good that part of the IRS cheque that I just wrote is going to Golman Bonuses... the sole purpose of my life, of my hard work is to continually fund Golman Bonues... Amen.

RockyRacoon's picture

The interesting thing to watch is how Fox is flogging this bitch like a cheap ho, and MSNBC won't go into depth on any aspect of it.   Fair and balanced!   Keep the citizens divided as much as possible with mis/no information.

Manthong's picture

How about this for a wild thought..

I heard rabid liberal Democrat Congress person Jan Shakowski (whose convicted felon husband wrote the book Obamacare was modeled after) respond to the questions about the investigation on the radio yesterday and it struck me as odd that she did not respond in her characteristic sycophantic Obama is messiah and master manner.

That got me to thinking.. What better opportunity could an anxiety ridden Democrat  leadership have to throw a politically doomed incumbent under the back of the bus?

It would be a twofer – a scapegoat for all the current problems and a fresh new distraction for the electorate courtesy of a genuine crime intolerable to Democrat party sensibilities.


phyuckyiu's picture

LOL stop scaring me, it's scary enough driving by two brand new Solyndra buildings in Fremont, that are barely even landscaped, and they are already chapter 11. What a scam.

Bendromeda Strain's picture

Next years Fall Fashion "must have"?     Cankles!

ElvisDog's picture

I totally disagree with all the negative votes. Can you imagine the theater of a Hillary challenge to Obama in the Dem primaries? Bring it on.....

Melin's picture

She blamed the Department of Energy but the Dems are definitely down on Barry this week.  


Chuck Walla's picture

Sorry, man, Owe-bama's plan is to run all the little guys out. Like "dust control on farms" and requiring CDLs for farmers, regulate them to death so only the mega corps survive. Its more efficient to "bundle" "contributions" from fewer email addresses.

Rodent Freikorps's picture

Collectivizing the farms has worked so well in the past.

Communism by the back door.

connda's picture

Good analysis comrade Rodent!  Now if the Central Committee can only get the unemployeed polatariats to work the collectives for the benefit of Mother Amerika.  Hummm.  Maybe it's time to populate the FEMA gulugs comrade.

SirPlayomic's picture

You don't get it do you? It's not communism that has taken over the USA, it's fascism: big government + big business, happily ruling together over little us.

Silver Dreamer's picture

Unfortunately, it's not even that simple.  Even so-called communist nations are controlled by a fascist oligarchy.  "Communism" is a tool for oligarchies just as all other forms of government are.

SofaPapa's picture

This is splitting hairs, but is this fascism (government using pet businesses to further their agenda) or crony capitalism (big business using their pet government to further their agenda)? I would argue it's closer to crony capitalism.  We're replaying the 1890-1930 period in the US nicely.  In either case, it's not communism, because noone is claiming they are acting in the interests of the future of mankind.  We are all quite clear it is about self-interest.  Even TPTB are not claiming otherwise.

robobbob's picture

don't sweat the details.

its all totalitarian statism. just a difference of how they pick who gets a seat at the table. and its never the people.

Silver Dreamer's picture

As Lenin knew: control food and you control the people.

DeadFinks's picture

Fewer interest groups are easier to control than the disparate masses.  It's all about control.

wisefool's picture

CDL for farmers means you must submit to random drug testing at your own expense, and pay for the license year round when you might haul grain 10 days a year. Also, if you got busted cornering light on that truck (you use 10 times per year), in broad daylight, it is a federal offense. (no exageration)

"Dust control"  is just a new permanent search warrant for your operation. They used to be able to have free reign on your property if you bought so much as a gallon of pesticide. So most guys now just pay the service company to do it. But that meant .gov had no reason to check out your bins. People think it is monsanto going after people who "re-use" GMO seeds, which is bunk, because they always had the ability to make the product sterile.

The weird thing is. farmers are generally the people you you dont mess with in a society. because a) they are mostly milquetoasts. b) they grow your food.

Freewheelin Franklin's picture

There are thousands of businesses out there that just need $25,000 - $50,000 maybe $100,000 to take things to the next level.  Real businesses that started in someone's basement or garage.


Like mine, that started out of the trunk of a 92 Buick Regal. But I don't want a fucking thing from the government. I just want them out of my way and out of my ass.

LongBalls's picture

Freewheelin - Don't even think about it dude. Keep growing on your own. Do not take a loan for crap unless it is short term. Like 6 months. Keep your money in a $5K fire proof safe and out of the bank. Up your home insurance to cover your deposits. Operate off of pure cash or an American Express you pay off every month. Don't put someone elses name on your efforts. Besides, going all cash transactions you will find buys you better deals in the real world. P.S. don't forget to invest some of your profits in gold and silver. You will be amazed at how fast your real wealth will grow being debtless. Good Luck brother!

williambanzai7's picture

The paperwork for a $25000 loan requires $50000 of legal fees.

Raymond Reason's picture

And that's the latest hassle with owning a small biz.  You have a flashing IRS target on your back.  My accountant says they are pouring over '08 returns (the last profitable year for most), and stepping up the number of audits.  Best to stay under the radar as much as possible. 

natty light's picture

Time to stay just under that next tax bracket.

Cabreado's picture

samslaught, it is (even) worse than that.

The "next level" has been obliterated for small business.

The "next level" is now completely undefined, but it involves hunkering down more than it does grandiose plans, for most.

There is fiscal suicide in the wings for most small business chomping at the bit for "just another 25k and we'll go to the moon!"

Awareness -- bad for business, bad for the e-con-o-my,

good for reality --

and we gotta get over that reality hump before we go anywhere north. 


UGrev's picture

I work for one such company. We need to hire 5 more developers this year alone but we can't do it without some cash. We're on a rather steep growth curve with regards to how fast we're acquiring clients but we're short staffed. I've requested those 5 more developers but will only get 1, MAYBE 2 (a junior) and they could probably do with hiring some training/implementation people to go along with it. Man, If we could get 1MM in capital, it would be a bonanza at the office.. we'd ROI that in 1.5 years. 

It would be nice to not have to pay 47 mother fucking percent in taxes just to run the biz. When I was contracting, tha'ts why I paid out in taxes. Nearly half.. that's seriously fucked up. I stopped contracting after 3 months. It was a waste of my time. 

Troll Magnet's picture

You're lucky to be in a growing industry, whatever that may be.  Because everywhere I look, I don't see ANYONE doing well.  Man, it's getting rough out there.

UGrev's picture

Lucky is putting it lightly. I landed this job by grace of God. I was up looking for jobs one night, literally falling asleep at the laptop, hand still on my mouse.. eyes rolling to whites.. I woke up, and as I did.. I clicked a link on the jobs page I was looking at. Some obscure fucking job that I probably never would have clicked on to check out.. I took a chance, sent the resume' in, had an interview and told the owner the truth about what he has; I was no bullshit and very candid. Hired me a few weeks later.

Here's what I told him in the interview after he said they wanted me to build their product (v2.0) in a year.  "It won't happen.. no, let me rephrase that. "I" can't do it. Not alone.. it's a 2 man, maybe a 3 man job minimum. Sure, maybe if you had some kid out of college, no wife, no kids, no other responsibilities and all he wanted to do was code for 18 hours straight and drink mountain dew..yeah, you might get something out of it, but I love my kids and I hate mountain dew." 

Sure, I was handed some major pile of sphaghetti.. but I'm working. Who says telling the truth doesn't spell "WIN" sometimes. I just happen to be sitting in front of a guy who respected the truth instead of some bullshitter who just wanted to land a check.  Did I wan't the job? hell yeah.. but I wanted it because I thought I could make the product into a competition crushing application not because I was desperate, even though I was.  Now I just need to pace myself as well as convince them that they are now a software company. The latter is proving difficult ;)

Obadiah's picture

Reminds me of the job interview I had a year ago.  A Huge car dealership wanting to take thier internet site to the next level. I flat out told them they needed a internet manager AND a coder, and I would be willing to take much less of a salary to make it happen and to do it right.

I think I lost the interview when they asked me "Who do you admire in buinsss?"  I very quickly said "It sure wouldn't be Warren Buffe'.  that criminal ganster.  All thier eyes went wide open. Ooops: ) 

Anyway they did end up hiring two people for the job.

But I am much better off at the "new" job I have going back to working for a magazine business I started in 1995.  My wife needed the help BIG time to continue to grow. Thank GOD we're in Lincoln, NE and we OWN the category were in!


realitybiter's picture

they don't make campaign donations over $100.  Get real.  Obama is a man of the people.  

KinorSensase's picture

Winner winner chicken dinner.  Well said!

Oh regional Indian's picture

Actually this is a classic combination of mid-western old-boy politics/money filth, a dash of silly.con valley "pitching" and of course the classic failure of crony capitalism.

Interesting thing, I was in the valley back in the day, very much in the thick of the old-boy, VC playas. The dumbest, smoothest speaking bunch of folks you could find. momentum chasers of the worst kind.

What they called deal flow was simply, I'll scratch your back, you blow me and we'll co-invest and call it quits.

And they kept choosing their own ilk.... more empty suits. 

I've said it so often here, I'll say it one more time for good effect, there is a way out of this technological mess that does not need multi-hundred-million dollar financing to creat absolutely "Holyyyyy SMoke", paradigm shifting products that actually work. For us.

This tech has left us eviscerated as humans, what I'm proposing is enervating.

But you've all got your blinders of "engineering training" and "mathematical certitude" and newtonian mechanics on too durn tight!

Loosen up, anything that keeps on tightenign will ultimately snap!


The Answer is There for Anyone Listening

High Plains Drifter's picture

jefferson liked farmers and small towns. he didn't like cities.  gee i wonder why. now the children of the farms, leave as soon as they can and move to the city, where the action is, doncha know.  in their thirst for "life"  they forget about the good things and the simple things that they left and most importantly, they forget about their duty as human beings to continue a tradition that is so important to america and to the world. my grandfathers were both farmers.  i knew the farm. i went to them often. as a city boy it was a refreshing change. my grandfathers were simple hard working men of the soil. they grew their own food. they had their own water wells.  when something broke, they fixed it. above all else, they were men of respect and they were called mr by all who knew them both old and young. when they shook your hand the deal was done. there was no need for a contractual arrangement.  now monsanto grows my gm foods and i am supposed to be happy for that. back when i was young, the people on the farms, were simple men. yet they had wisdom and when they talked we listened  because they had much to say. my country is dying now. i hate to see it.  we have such wonderful traditions here that are dying.   in this day of gray, oh how i long for black and white.........

caerus's picture

this is how i was raised...jefferson is rightly regarded as a genius

High Plains Drifter's picture

jefferson was a complex man, hard to read. but he knew "them" like he knew himself and he knew what we needed to do as a nation to survive. but . we didn't listen did we?

chistletoe's picture

Jefferson, certainly an uncommon genius, has sometimes been overrated.

for instance, it is not well documented that he was a perpetual failure at farming,

and though he boasted of a plantation of more than 2,000 acres,

and a labor source of over 140 slaves,

he still could not figure out how to turn a profit!

Not to mention that, in recent years, it has come out

that the man who gave us the phrase "certain inalienable rights, among them life, liberty, and the pursuit of happiness"

had an ongoing affair with one of his slaves, lasting decades, producing many children,

yet even in his will he never granted her her freedom ....

wisefool's picture

Agreed. He is not one of my favorite founding fathers. He spoke well, but did not always walk the walk. 

Kinda like when bill cliton got elected. The MSM would call him a hillbilly. Hillbillies everywhere were genuinely offended at the comparison.

Silver Dreamer's picture

That relation with a slave story is academic bullshit.  Prove it.  Even if it is true, it proves the point that he did believe all men and women were equal.  If he was the racist bastard our government educators want us to believe, he wouldn't have dreamed of having sex with a slave. It being true or not does not change the fact that the man was a genius in many ways. He couldn't succeed in farming? Who gives a shit?

Cabreado's picture

Those wonderful traditions will continue, silently, and then return with vigor.

Because they must.

Because the nightmare created by the self-absorbed will be relatively short lived...

and when they, the self-absorbed, are finally backed into the corner of their making, with no tools-of-mass-sociopolitical-destruction at their disposal, spent, squandered... truth will prevail, I'm quite certain.

Fortitude is the word, I think.  Hang in there.

When Control has failed, and it will, simple, traditional values and traditions will rule the day. 

The alternative is turmoil, for a century and more, and I believe we're not prepared to find that acceptable.  (And that is a good thing.)


Greater Fool's picture

So...summary of the link: ORI = all hat, no cattle.

DirtMerchant's picture

Sorry ORI,

I went to your blog and looked for "the answer is there for anyone listening" and found only more questions. If you are not going to publish it, patent it or produce it, there is not much to talk about.

Oh regional Indian's picture

Dirtm, when you dig for gold, do you send out a geoligist to look for veins of metals that indicate GOld must be below or do yuo look for gold on the surface? Hmmm?

it takes digging. For the right mind, who clearly has not read what I HAVE put out, there are more than enough hints that there is gold there.

And the patent process in the US especially is totally corrupted and humongously expensive and hardly ever worlds for the single inventors interest.

It will take one incisive mind asking oen key question.

That is why I continue to mine here, in the face of lot's of pushback, because I don't knwo a better collection of minds on the net.

So far, almost zero! All I've got is doubts and clearly not much deep inquiry. 

You think I should just publish it all eh?

This is my background...... I know exactly what I'm talking about.




Seize Mars's picture

Actually this is a classic combination of mid-western old-boy politics/money filth...

There is no such thing. You are not from the midwest and you don't know what you are talking about. Old-boy BULLSHIT is an import.