T Nation

Wake Up!


The following is the press release from 2009 announcing the $535 million bad loan made through the DOE and on the insistence of Barrack Obama to Solyndra, Inc., the now bankrupt "Green Energy" company. Of course the money come from the good old clueless American taxpayer. Pay particular attention to the last paragraph noting that the loan was made after a "thorough investigation and analysis of the project's financial, technical and legal strengths."

Now note that the Treasury Inspector General has now opened a probe into this Obama's Solargate. Per the AP, "A spokesman said Thursday that the inspector general is reviewing the role and actions of the Federal Financing Bank, a government corporation supervised by the Treasury Department. The bank provided the low-interest loan to the Fremont, Calif.-based company." The "concern" is that Obama has pushed levers to get the investment in a venture controlled by a "friend", George Kaiser, a documented Obama "bundler", on a fasttrack, with the White House Office Of Management Supervision urging the DOE to release the funds without proper diligence. "The House energy committee released documents Wednesday that appeared to show senior staff at the White House Office of Management and Budget chafing about having to conduct "rushed approvals" of a loan guarantee for Solyndra. Republican members of the committee said the emails raised questions about whether the loan was rushed to accommodate a Solyndra groundbreaking ceremony in September 2009 that featured Vice President Joe Biden and Energy Secretary Steven Chu."

Wake up Obama supporters. This guy is rotten.

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

Fremont, CA, March 20, 2009 â?? 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. Treasuryâ??s Federal Financing Bank to expand its solar panel manufacturing capacity in California.

â??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,â?? said Solyndra CEO and founder, Dr. Chris Gronet.   â??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.â??

Designed specifically for commercial, industrial and institutional rooftops, Solyndraâ??s proprietary photovoltaic (PV) systems generate significantly more solar electricity per rooftop at a lower installed cost than conventional flat panel PV technologies. Further, Solyndraâ??s PV systems are fast and economical to install due to the simple horizontal mounting and unique air-flow properties of the solar panels. Solyndraâ??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 electricityâ??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.

â??DOE, in consultation with independent consultants, performed a thorough investigation and analysis of our projectâ??s financial, technical and legal strengths,â?? said Dr. Kelly Truman, Solyndraâ??s Vice President of Marketing, Sales and Business Development.  â??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.â?? 

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.


The stink gets worse. Here is a clip of another article raising further questions.

Solyndra - A few new facts. A few new questions
Submitted by Bruce Krasting on 09/15/2011 21:13 -0400

I have, on numerous occasions in the past, written an article that took the form of a question to readers. I present some demonstrable facts. Then I pose the question(s), "What do you think?" "What do you know?" I'm ?smarter? as a result of the responses I have gotten. I think others are as well.

I?m going to take this to a different level. The following questions are directed to my usual readers. They are also directed to the actors in the Solyndra story. The DOE, OMB, company execs (past and current), the equity owners, the lawyers and the MSM could chime in with an explanation. This blogger/taxpayer is seeking some clarity on the following.

There are questions of who did what to whom and when. There is an aspect to this that has not yet (to my knowledge) been discussed in the media. (Note-I tried to make this easy to follow. It isn't. Sorry)

On July 29, 2011 (just five-weeks before going bankrupt) Solyndra (?SOL?) entered into a transaction whereby it sold both the Accounts Receivables (IOUs from panels sold) and the Inventory (panels) of the company ("the A/R Transaction?). Solyndra Financial (?SOLF?) (a subsidiary of SOL) was the seller. The purchaser was a newly formed company called Solyndra Solar II LLC (?SSII?). The following is the only information that I could find about SSII. Note that the company was organized in the Sate of Delaware one-day before the sale of significant assets of SOL.

It is clear from the limited information from the bankruptcy court that the A/R transaction took place. From the SOL, INTERIM ORDER (I) court filing: (Emphasis mine)

Inventory Accounts Receivable Trust Funds. Prior to the Petition Date, Debtor Solyndra LLC (as servicer), one of its subsidiaries, Solyndra Financing LLC (as seller), Argonaut Solar LLC (as agent), and Solyndra Solar LLC (as buyer), entered into that certain Amended and Restated Purchase and Sale Agreement dated as of July 29, 2011 (the "A/R Sale Agreement"). Pursuant to the A/R Sale Agreement, Solyndra Solar LLC purchased certain of the accounts receivable resulting from the sale of the Debtors? inventory and owns and has the right to receive the proceeds of collection of such accounts receivable. In addition, Solyndra LLC (as servicer), one of its subsidiaries, Solyndra Financing LLC (as seller), Argonaut Solar LLC (as agent), and Solyndra Solar II LLC (as buyer), entered into that certain Inventory Purchase and Sale Agreement dated as of July 29, 2011.

I have found no explanation/details for this transaction. It is clear that a purchase/sale took place. The question of how much was sold and at what price is not clear. It is also not clear what Argonaut Solar is doing in this deal. Argonaut is a name that George Kaiser uses. His family investment vehicle channeled money to SOL through a company called Argonaut Ventures. Why would a company controlled by GK have a role as Agent between the buyer and seller of SOL?s assets? A question to ask is whether GK has (directly or indirectly) an interest (equity or debt) in SSII.

Again, both receivables and inventory were sold. A question is, ?Was this a material transaction?? The court docs suggest there is real money involved.

As of September 2, 2011, there was approximately $3,866,342.83  in Inventory Accounts Receivable Trust Funds being held in the Inventory AIR Purchaser Trust Accounts.

There was nearly $4mm of cash in the account! There are, no doubt, other receivables to come in the future. Clearly the sale of receivables was material.

I have no information from public documents regarding the scope of the sale of inventory. I have information from a former Solyndra employee (Yes, this person will remain anonymous). I believe that the following is factual. A third party confirmation of this is required. (Love to hear from you). With that said:

It seemed like the company had been hoarding panels in the last month. We were producing a great deal of material, but holding off on shipments.

We were stacking up panels everywhere. Our old building was packed with them, but we had some huge orders in the works. Usually we shipped most of the material in the last week of the quarter, so this was not completely unusual.

We had close to three months worth of panels and we were on track to sell about two hundred million this year. That works out to about fifty million in inventory.

Make what you will of this. What is the value of inventory that is not yet sold? Answer: A fraction of the sale value referred to above. But even a small fraction is still a material number.

Argonaut (GK) has separately offered to provide a post bankruptcy loan of $4mm ("DIP"). There are many terms required by Argonaut. One requirement relates to the A/R sales. From the docs:

It is a condition to funding under the DIP Facility that the Inventory Accounts Receivable Trust Funds being held in the Inventory A/R Purchaser Trust Accounts are released to Argonaut Solar, LLC, as agent for the Inventory A/R Purchasers.

Argonaut's (very good) lawyers make their position very clear as to who owns the assets in the A/R accounts.

The Purchased Inventory (including any proceeds thereof) and the Inventory Accounts Receivable Trust Funds (including any proceeds thereof) are property of the Inventory AIR Purchasers and not property of the Debtors? estates.

In other words, Argonaut is willing to make a new $4mm loan, PROVIDED that the Judge releases (at least $3.86m) back to an entity that Argonaut is connected to (SSII). In addition, the Judge would be functionally sanctioning the A/R sale. The inventory (whatever it is worth) and the receivables (whatever they are worth) will be excluded from the Debtors Estate. That means that there is even less of a chance that Uncle Sam sees a penny of the money that he (we) are owed.

One additional point from the unnamed ex-employee:

It seems liked Solyndra was racing to spend all the federal money right up till the end.

There are many possible explanations for the July 29 A/R sale. This could have been an arms-length transaction that was a last ditch effort to save SOL. This could also be something a bit more malodorous. I don?t know.

This is a unique bankruptcy. A significant amount of public money has been lost in a startup company. While the details of the A/R deal may be kept confidential, the question marks that this transaction raises will not go away.

Don't read this and conclude that I?m suggesting wrongdoing on anyone?s part. That?s not the case. What I?m looking for is some clarity and opaqueness. I think the country deserves that.


This was their clear and obvious first mistake. What made them think that US MANUFACTURING could compete with CHINA MANUFACTURING? And in California of all places? At least, they could have picked a mid-western right-to-work state and possibly faired better. And for the life of me, why do companies insist on building bright shiny new manufacturing plants when there are so many abandoned manufacturing plants littering the country-side that could be awesomely renovated for a lot less money?

All of this isn't helped by the fact that the price of PV panels has steadily dropped, month after month, for the past couple years -- as abundant (foreign) supply floods the market.


Not to mention but the tech they were going to produce was LESS efficient than current tech.

The selling point? goes togeter like legos.


Well, building, them for 6 dollars and selling them for 3....

I am not a financial analyst, but still...


VP Biden was in Tulsa on 8/30 for a private fundraiser. Might he and Tulsan George Kaiser of Solyndra had a little discussion then? hmmm