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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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Thu, 09/15/2011 - 22:05 | 1675905 wisefool
wisefool's picture

Ohh I agree. The problem is Obama said "I willl have the most open and transparent government eva!"

That, and he promised he'd have solar panels on the whitehouse in 2010.

If it was me, I'd man up, buy the f#$%ers from china and say: "America, this is what you get when china graduates more engineers than we graduate constitution laywers, MBAs and Econ PhDs! Stay in school kids!"

Thu, 09/15/2011 - 22:09 | 1675917 Dr. Engali
Dr. Engali's picture

I guess that makes it alright then.

Thu, 09/15/2011 - 21:51 | 1675876 Freewheelin Franklin
Freewheelin Franklin's picture

How exactly did this business fail with the full support of the White House and Goldman? Obama can't even do crony-Capitalism right. He must be a Communist.

 

Epic Fail

Thu, 09/15/2011 - 22:33 | 1675966 zerozulu
zerozulu's picture

When fundamentals are wrong, no one can help. What do you think is going to happen to this country? Only consumption economy will take us no where.

Thu, 09/15/2011 - 21:55 | 1675887 Yes_Questions
Yes_Questions's picture

 

 

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

 

Tentacle Prints.

 

Give it a name.

Thu, 09/15/2011 - 21:57 | 1675889 digalert
digalert's picture

 

 

Hmmm,

looks like shit,

smells like shit,

must be Golden Slax

Thu, 09/15/2011 - 22:05 | 1675903 khakuda
khakuda's picture

This is great.  Seriously, where's the complete list of what they did.  The press seems to have forgotten they helped Greece hide their debt off balance sheet to get into the Euro to begin with and have had a hand in EVERY disaster there is...

Thu, 09/15/2011 - 22:05 | 1675904 khakuda
khakuda's picture

This is great.  Seriously, where's the complete list of what they did.  The press seems to have forgotten they helped Greece hide their debt off balance sheet to get into the Euro to begin with and have had a hand in EVERY disaster there is...

Thu, 09/15/2011 - 22:18 | 1675936 laosuwan
Thu, 09/15/2011 - 22:22 | 1675945 Jim in MN
Jim in MN's picture

This sure looks like a head-roller, but whose head is available to be rolled?  Rahm already left.  No one else is visible enough for anyone to notice.

Goldman, JPM et al should simply be blacklisted anyway, that is obvious, but the elites are too high or whatever it is to care. 

So many important problems and it's just a derpfest at the top.

The New National Party.  Watch for it.

Thu, 09/15/2011 - 22:24 | 1675948 Yen Cross
Yen Cross's picture

 My Name is " WANDA"  <   How may I direct your checking account?  My boss'es  passed in vitro, in the 90's...

 

                 You may know them? " GLASS/ STEaGALL?

Thu, 09/15/2011 - 22:43 | 1675992 SqueekyFromm
SqueekyFromm's picture

Instead of saying this: "This scandal is rapidly becoming the gift that keeps on giving..."

it should have read:

The GRIFT that keeps on giving. . .

Squeeky Fromm, Girl Reporter

Thu, 09/15/2011 - 22:45 | 1675997 Atomizer
Atomizer's picture

Between Obama, Maurice Strong and Ozone Gore, the plan failed by means of fraud.

 

Time capsule:

 

DECEMBER 19, 2009 Climate Pact Falls Short

http://online.wsj.com/article/SB126112727324796837.html 

 

The same assholes different day 

Denmark’s prime minister travels to U.S. to sell climate treaty talks

http://www.msnbc.msn.com/id/27781117/ns/world_news-world_environment/t/experts-warn-severe-water-shortages/  

 

I suggest you sniff around in this direction. You'll hit triple 7's and connect the dots 

Chicago Climate Exchange

https://www.theice.com/ccx.jhtml 

 

Lastly, don't forget Maurice

Maurice Strong- Man Behind Agenda 21 – Part 2 

In time, everything will become crystal clear and complete a full circle. Knowledge is power. ;>)

Thu, 09/15/2011 - 22:47 | 1676003 Homey Da Clown
Homey Da Clown's picture

George Kaiser, who has in the past been labeled a major Solyndra investor as well as a Obama donor, made three visits to the White House on March 12, 2009, and one on March 13. Kaiser has denied any direct involvement in the Solyndra deal and through a statement from his foundation said he “did not participate in any discussions with the U.S. government regarding the loan.”

But the countless meetings at the White House seem hardly coincidental. Kaiser, in fact, is responsible for 16 of the 20 meetings that showed up on the White House logs.

In the meetings on March 12, Kaiser met with former Chairman of the Council of Economic Advisors Austan Goolsbee at 11 a.m., Senior Advisor Pete Rouse at 3 p.m., and Deputy Director of the Domestic Policy Council Heather Higginbottom at 6:30 p.m. On the 13th, Kaiser met with Deputy Director of the National Economic Council Jason Furman at 9 a.m.

Other Solyndra officials that made the trek over to the White House include Chairman and Founder Christian Gronet on September 22, 2009, at 9:30 a.m.; and Board Members Thomas Baruch and David Prend.

Baruch went to the White House May 7, 2010, and September 20, 2010, at 8:40 a.m. and 1 p.m., respectively. Prend visited on September 21, 2010, at 9:15 p.m.

The visitor logs also show that a number of members of the administration a loan guarantee for Solyndra pressing enough to take meetings. Former Chief of Staff Rahm Emmanuel and Adviser Valerie Jarrett even took meetings with Kaiser.

Fri, 09/16/2011 - 00:57 | 1676172 Yen Cross
Yen Cross's picture

 I transposed that " Thread" , well done " Mars' Man"....

Fri, 09/16/2011 - 01:25 | 1676205 Idiocracy
Idiocracy's picture

GS was going to lead Solyndra's IPO.  So of course they got their funnel deep into the company in the prior years.  Smarmy Ivy League parasites

Fri, 09/16/2011 - 01:56 | 1676237 No More Bubbles
No More Bubbles's picture

I'm amazed none of these criminals have been executed yet.

Fri, 09/16/2011 - 02:13 | 1676261 Hobbleknee
Hobbleknee's picture

Unless they find Obama's aunt on the payroll, nothing will come of this.

Fri, 09/16/2011 - 04:10 | 1676334 Moon Pie
Moon Pie's picture

Bitch-Dollar Bitchez!

Fri, 09/16/2011 - 08:08 | 1676504 JohnKing
JohnKing's picture

Who is going to get the plant for pennies on the dollar? Isn't this standard crony business procedure, layoff the infrastructure cost on citizens?

With Goldman this close to the deal I have to believe they have someone in the wings salivating over all the shiny new equipment.

Fri, 09/16/2011 - 08:27 | 1676533 j0nx
j0nx's picture

Eric 'Place' Holder will simply lift the edge of the carpet and sweep this whole mess right under it and the American people will yawn and go back to watching football and drinking beer and whining that they can't marry their gay lover in whatever state they live in.

Fri, 09/16/2011 - 09:12 | 1676665 Van Halen
Van Halen's picture

The best part about this is that yesterday FoxNews online reported that four more big stimulus recipients went belly-up and three of them were alternative energy projects. So what does a good Socialist administration do? Doubles down and starts giving more taxpayer money to more alternative energy projects! THAT makes sense!

Fri, 09/16/2011 - 09:44 | 1676769 Silver Dreamer
Silver Dreamer's picture

The looting continues.  I figure it this way:  As long as they are still looting, we have more time to prepare.

Fri, 09/16/2011 - 10:35 | 1676965 Nothing To See Here
Nothing To See Here's picture

I am sure Solyndra is now in good position to get a cash injection from the ECB. Call Warren Buffett ASAP, I hear he wants to provide the collateral.

Fri, 09/16/2011 - 11:22 | 1677136 whaletail
whaletail's picture

Where there's smoke...there's fire.

Where there's smoke, fire and brimstone...there's Goldman.

Krasting in 2012!!!!!!

Tue, 11/22/2011 - 04:53 | 1901738 AmeliaV
AmeliaV's picture

In the real world, even good risks sometimes do not pay off. That is not to say that Solyndra was necessarily a good risk to take cash loans.  However, you seem to think that it was obvious from the start that it was not going to work; an assertion that is the height of arrogance.  Much smarter and more well informed people than you invested in this technology, but you'd rather try to show how smart you are; in retrospect.  I daresay that it's quite easy to Monday Morning quarterback something that didn't work out to attempt to draw conclusions about Steven Chu's competence, but if that had been done to Steve Jobs, we might have not had the ipod or the ipad after his errors on the Lisa, Next, the G4 Cube....there are others.   Fact is, nobody bats 1.000. One thing that is for sure however, is that people who site on the sidelines always bat 0.00.

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