A California-based solar company that received a $535 million loan guarantee from the Obama administration announced Wednesday that it will shut down.
The company, Solyndra Inc., said Wednesday it would suspend its manufacturing operations and lay off 1,100 employees effective immediately. The company said it intends to file a petition for Chapter 11 bankruptcy protection.
So..... half a billion in federally-guaranteed loans, and a year later the firm files bankruptcy?
What's wrong with this picture?
How does a company manage to get a loan for that sort of money, federally-guaranteed, when it cannot even demonstrate viability beyond a 12 month period?
I can't wait for the forensics on this one; the bankruptcy proceedings should be fascinating.
I'm especially interested in where the $535 million actually went and what it was spent on.
The good news is that creditors generally take their time to figure this sort of thing out after the big "boom" happens, and thus we're likely to get some answers, whether they be flattering or not.
Not all businesses succeed, and some fail for purely market reasons or simply due to bad execution. There's nothing wrong with that and it's part of the capitalist way.
But there is something rather stupid about the government picking winners and losers, and in this case, doubling down on what is now apparently a big loser, squandering nearly half a billion dollars in the process.
Obama may be many things but one thing he most-clearly is not: A competent Chief Executive.
Ps: One question from the peanut gallery: Did management get their bone-uses?
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