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View Full Version : Surprise,Surprise:Solyndra Investors: We Wanted The Loan So We Could Cash Out'



megimoo
09-16-2011, 03:07 PM
A clearer picture of the underlying insider scheme at Solyndra is beginning to emerge.

Yuliya Chernova of the Wall Street Journal writes a superb column today regarding all the business problems that beset the scandal plagued Solyndra. There were a litany of engineering and business problems that were very apparent to everyone except, apparently, the White House politicos that pressured career officials in the government to extend a 500 million dollar loan guarantee.

The crony investors were given an unusually low interest rate for such a venture. Solyndra was first in line to get loan guarantees under the Obama program to promote solar energy ventures. Solyndra private investors were given priority in case of bankruptcy that placed their claims above those of taxpayers -- a highly unusual occurrence, according to the Wall Street Journal.

So who were the type of people granted such favorable treatment? Yes, Obama donors and bundlers. That has been widely publicized..... But beyond that, what type of character did they possess?

One investor behind Solyndra blurted out the truth. The loan was needed and needed urgently to fatten up the company and show a going concern (with a factory, etc).
Why?
From the column:
There was another motivator -- Solyndra's management and investors had an eye on an initial public offering. "There was a perceived halo around the loan," said an investor with knowledge of the company. "If we get the loan, then we can definitely go public and cash out."

The huge loan would be a selling point in an initial public offering. The company promoters could point out that the loan gave them credibility -- that the government had vouched for their viability and prospects.

http://www.americanthinker.com/blog/2011/09/solyndra_investor_admits_we_wanted_the_loan_so_we_ could_go_public_and_cash_out.html
...........................
Loan Was Solyndra's Undoing

Solyndra Inc. was supposed to be a marquee example of how private and public capital, brought together, could vault innovative companies to commercial success.

Instead, the $535 million government loan guarantee so prized by the solar-panel maker may have ultimately contributed to the company's undoing, say investors with knowledge of the company's operations.

The new factory built with Department of Energy funds foisted fixed costs on a company already struggling through an industry shake-out, they say. What's more, the debt paradoxically made raising more money difficult. Once the government demanded priority in the event of failure, private investors were less ...
SNIP

http://online.wsj.com/article/SB10001424053111904491704576572872256772948.html

Starbuck
09-16-2011, 03:20 PM
More reasons to close the Department of Energy.

lacarnut
09-16-2011, 04:05 PM
It is idiotic to loan rich billionaires millions of our money for boondoggles like solar and wind power. Tesla Motors will probably be the next one to go into bankruptcy. Just another 460 million down the drain. Pickens probably got government funding for his failed windmill projects also.

I doubt that any Solyndra top dogs will be indicted cause thievery is the Chicago way. Holder will squash any proposed indictments. So, it is doubtful that anything will come of it.

SarasotaRepub
09-16-2011, 05:08 PM
And as we all know, it was Bush's fault. :rolleyes::D

fettpett
09-16-2011, 05:11 PM
and the Obama admin is trying to pass the buck off to Bush, even though the DOE denied the loan under Bush and 3 months later approved it under Obama, with the pushing of Biden's former Chief of Staff Ron Klain...who incidentally was the Chief of Staff for his Dem predecessor Algore...there is another connection between Klain pushing for loans to other "greenie" companies that Algore has had investments in as well