Business

Another Energy Company Files For Bankruptcy, Could Leave Taxpayers On The Hook For Millions

Beacon Power, a Massachusetts-based, clean-energy company, filed for bankruptcy protection on Sunday, Reuters reported, potentially leaving taxpayers on the hook for up to $43 million, reports Business Insider.

So what’s the reason this time?

“The current economic and political climate, the financing terms mandated by DOE, and Beacon’s recent delisting notice from Nasdaq have together severely restricted Beacon’s access to additional investments through the equity markets,” Chief Executive Officer F. William Capp said in papers filed yesterday in U.S. Bankruptcy Court in Wilmington, Delaware, according to a recent Bloomberg report.

In short, the “political environment” and financing terms that the company agreed to are prohibiting them from operating profitably?

Early chatter is that this case may very well be another Solyndra situation all over again. Much like the failed energy company, Beacon Power received millions ($43 million to be exact) in loan guarantees only to file for bankruptcy soon afterwards.

This could make matters worse for the Obama administration seeing as how House Republicans have already started an investigation into the DOE loan program. Another bankruptcy will only exacerbate the situation.

However, unlike Solyndra, taxpayers will be “among the first in line to collect among Beacon’s creditors.” Yet despite this, the failure of yet another energy company only adds to the list of failed investments made by the administration–and thus strengthens the argument against the administration’s long-term “clean energy” goals.

Beacon Power assures investors that not all is lost.

The Beacon Power subsidiary that received the loan guarantee “has cash reserves and proceeds from the plant that it was required to hold as collateral on the loan,” according to Bloomberg.

Comments (35)

  • wallst4sport
    Posted on November 2, 2011 at 11:33am

    I am a conservative, I am also an environmentalist, the two are far from mutually exclusive. It is dishonest when my fellow conservatives say otherwise. I am 100 percent behind legitimate efforts to find and harness alternative energy. This will give us choices in this country. The freedom of choice is one of my favorite freedoms. We can not allow the green movement to be hijacked by nutjobs and corrupt politicians who only see another chance to ripoff the public coffers because they can. At one time electric was an alternative energy source. The automobile was thought to be a passing fad, and men traveling in space was a delusion of the deranged. We need to clean up the worlds pollution and do what we can to leave our childrens children a clean and healthy planet. So quit knocking all things grren and acting like you speak for all conservatives because you do not. I for one will support legitimate green initiatives as well as a small government and no new taxes.

    Report Post » wallst4sport  
  • don young
    Posted on November 1, 2011 at 7:56pm

    Gee i wonder why this country is going bankrupt we need to replace this congress and senate and the president so we the people can get this country back on track.

    Report Post »  
  • jrcess
    Posted on November 1, 2011 at 1:10pm

    Name one thing that has worked for Obama? Nothing other than raising campaign money. What a looser.

    Report Post »  
    • INOGAWD
      Posted on November 1, 2011 at 4:53pm

      GREEN ENERGY is an EYESORE !!

      KILLS THOUSANDS of birds and bats !!

      Where are the TREE HUGGERS ??????

      KISSING Obamas AZZ, one and all……

      Report Post » INOGAWD  
  • EnergyJoe
    Posted on November 1, 2011 at 11:36am

    Listen people theres nothing wrong with green energy it’s the application of it. It’s been said that covering 10 acres or 10 miles in New Mexico would power our whole country! Are we doing it? No. We let our government throw good money after bad. We are not interested in being energy independent or we would have done it already. Our country is rich in all forms of energy but we try to control the rest of the world with our consumption…where we get our energy. It’s about wealth redistribution…we build countries by buying their oil etc,. So don’t bash clean energy you may want to partake when your coal fired plant gets to be to expensive because of regulation. The only way solar and wind will be a viable option is if the price of all other energy sources “…sky rocket” then it will be a good investment. Problem is natural gas it’s cheap and cleaner than other sources so they will say that gas fracking is dangrous and needs more regulation thus making it harder and more expensive again raising the price. Its all manipulation. My suggestion is for most to get ahead of the curve. Deverseify your energy requirements, start small and work toward energy indepenence in your own life.

    Report Post »  
    • zenjak
      Posted on November 1, 2011 at 12:47pm

      I have nothing against alternative forms of energy, including green energy. What I do have an issue with is that any honest attempts in such endeavors in this country have in large part become co-opted by the very corrupt combination of the federal government and its selected cronies. Now such programs become money funnels. It’s a damn shame becasue I believe that there are those in this country who, if left alone, could make some pretty innovative breakthroughs in alternative energy.

      Report Post »  
    • GQQSER
      Posted on November 1, 2011 at 1:01pm

      Ahhh slow your role there energy Joe, because you or your grand-kids won’t be around long enough to find out. We have enough coal in this country to last 500 years or more at current rates. The environmentalists don’t want us to mine it any more.
      If solar power worked it would be sold commercially for a PROFIT. Just like an Ipad, Mac or anything else. If the Ipad didn‘t work or couldn’t compete in the market it would go the way of Beta.
      I for one would love to be off the grid, but I am not willing to pay any price to do it.

      Report Post »  
  • ColoradoMaverick
    Posted on November 1, 2011 at 7:55am

    These are just the tip of the corruption iceberg people. This will be exposed sooner or later and Obama will be found to be right smack in the middle of it all.

    Report Post » ColoradoMaverick  
    • INOGAWD
      Posted on November 1, 2011 at 11:45am

      Where is the Main Stream Media on this ??? Oh,Thats Right
      Soros, NWO, and Obama OWN them…..and they have the OWS
      convinced the GOP is at FAULT.. These guys are good !! Lotta
      Useful IDIOTS out there.

      Report Post » INOGAWD  
  • lukerw
    Posted on November 1, 2011 at 12:53am

    OK… I’m numb now! Just, Help Fire Obama!

    Report Post » lukerw  
  • Soulphoenix
    Posted on October 31, 2011 at 11:29pm

    Most CEO’s are just like most politicians. What the CEO would have said if he was being honest was, “We didn’t really know what we were doing, but the government was handing out money and we took a shot while paying ourselves handsomely. We knew if it didn’t work out we could just walk away and think up another new venture somewhere.”

    It happens ALL the time.

    Report Post » Soulphoenix  
  • Mr.ManZ
    Posted on October 31, 2011 at 11:29pm

    Beacon Power, yet another one of Obama’s big donors, kind of makes ya wonder if these failing energy companies were not just acting as safety deposit boxes for Obama and company.

    Report Post » Mr.ManZ  
    • Mil Mom
      Posted on October 31, 2011 at 11:46pm

      @Mr.ManZ
      Posted on October 31, 2011 at 11:29pm
      Beacon Power, yet another one of Obama’s big donors, kind of makes ya wonder if these failing energy companies were not just acting as safety deposit boxes for Obama and company
      ***
      You bring up a good question. If the bankruptcy court DOES get money out of it for the government, WHERE DOES IT GO? A) into the Treasury? B) back into the energy department’s budget? C) into democrat party campaign treasuries?

      Report Post » Mil Mom  
    • INOGAWD
      Posted on November 1, 2011 at 5:04pm

      This is how this Imposter raises hundreds of millions of dollars
      For his Campaigns… Liar in Chief.. DISGUSTING !!!!!

      Report Post » INOGAWD  
  • Not going to take it anymore
    Posted on October 31, 2011 at 10:19pm

    This is the exact reason why we the people called our reps and told them no on the stimuilus pakages . They still signed it. Why should we be held accountable for their actions.This our reps problem not ours. Remember we paid for Pelosi to have chocolate covered strawberries for her birthday.

    Report Post »  
  • chinsue32
    Posted on October 31, 2011 at 9:43pm

    Scott, Readers, We are hearing about alot of these green energy companies going bust. Is this representative of most of the industry. Are there any companies that are doing well? Give us sources to check out.

    Report Post »  
  • Free2speakRN
    Posted on October 31, 2011 at 9:00pm

    Who’s surprized?

    Report Post »  
  • pinchanze
    Posted on October 31, 2011 at 8:51pm

    Thanks Berry!

    Report Post » pinchanze  
  • Wolf
    Posted on October 31, 2011 at 7:10pm

    There you go- indicative of what happens when tree huggers and politicians get mixed up in business. On a personal note, it couldn’t have happened in a better place.

    Report Post »  
  • Cat
    Posted on October 31, 2011 at 6:30pm

    Folks;
    What we have here is legalized plunder by criminals, more commonly known as corruption.
    So why are we, the working taxpayers, funding criminals?
    Because if we stop paying federal income taxes on the basis it is illegal to fund criminal activity, the judges will rule in favor of the criminals.

    Report Post » Cat  
    • Mil Mom
      Posted on October 31, 2011 at 11:49pm

      @Wolf
      Posted on October 31, 2011 at 7:10pm
      There you go- indicative of what happens when tree huggers and politicians get mixed up in business. On a personal note, it couldn’t have happened in a better place.

      Report Post » Log in to ReplyReply Cat
      Posted on October 31, 2011 at 6:30pm
      Folks;
      What we have here is legalized plunder by criminals, more commonly known as corruption.
      So why are we, the working taxpayers, funding criminals?
      Because if we stop paying federal income taxes on the basis it is illegal to fund criminal activity, the judges will rule in favor of the criminals.
      ****
      WELCOME TO REALITY!!! Ain’t the 21st century great?

      Report Post » Mil Mom  
    • Harvey
      Posted on November 1, 2011 at 12:46pm

      The Judges are the criminals,there is more corruption in the Judges chambers than anywhere else in this Nation.The Federal Judges take their orders from Washington,no matter what the law is they do what they are told to do.Its all about money,justice is,if you dont have the money to pay the best Lawyers $500 an hour then you will not get justice.That is what justice has became in America.It not whether you are innocent or Guilty its whether you have money or not.This is what has became of electing lawyers for our Representatives in Washington,they make the laws to benifit themselves and it wont change until the real Americans change.For this nation to ever get back to where it belongs we must return to the Citizen Legislators who serve their time in office and return home so someone else can serve.Thats the only way it will ever be fixed.

      Report Post »  
  • bcope01
    Posted on October 31, 2011 at 5:47pm

    The taxpayers should not be “on the hook” for these poor decisions. Let the Dept of Energy and all of it staff start paying down the costs since they did this to us. Heads must roll and it starts at the top, Mr. O has to go. Repeat after me. Mr. O has to go. Congress get off your lazy butts and make someone accountable for this travesty.

    Report Post » bcope01  
  • georgeisn6
    Posted on October 31, 2011 at 5:27pm

    Green energy= “LIGHTS OUT”

    Report Post »  
    • turkey13
      Posted on October 31, 2011 at 5:51pm

      I bought over 200 regular light bulbs for myself and my 3 sons. Don’t want to expose my gradsons to Mercury if a bulb explodes or is broken. When they go out we just despose of them in the landfill. The new mercury bulbs have to be handled as if they were radioactive,

      Report Post »  
    • Mil Mom
      Posted on October 31, 2011 at 11:56pm

      @georgeisn6
      Posted on October 31, 2011 at 5:27pm
      Green energy= “LIGHTS OUT”
      ****
      Green energy= All the envy and angst, our kids & grandkids will feel when they’re being taxed for life for the energy burnt by algore et al, while they work by candle light, because they can’t afford electricity!

      Report Post » Mil Mom  
    • INOGAWD
      Posted on November 1, 2011 at 4:49pm

      GREEN ENERGY, ia an EYESORE !!!

      Report Post » INOGAWD  
  • Fly Old Glory 24/7 365
    Posted on October 31, 2011 at 5:03pm

    GOOD, I hope this continues to happen. I hate the color GREEN and I look forward to it’s demise. Family members in the business and they too will soon feel the pain of failure. IT DOESNT WORK..

    Report Post »  
  • HKS
    Posted on October 31, 2011 at 4:46pm

    What idiot said that a novelty process is our salvation with energy. If you want energy you had better be ready to burn something. God gave you the best source, coal, figure out how to do it right instead of fooling around with pipe dreams.

    Report Post » HKS  
    • gdbhusker
      Posted on October 31, 2011 at 11:52pm

      absolutely…..I wish they would take the energy, off of the green on these scam companies….makes all of us in REAL , tangible, energy look bad!….well said..

      Report Post » gdbhusker  
  • 13th Imam
    Posted on October 31, 2011 at 4:43pm

    Barry just completed the Hat Trick

    Solyndra
    Solar Power(or whatever it’s alias is today)
    Beacon Power

    Report Post » 13th Imam  
  • bum
    Posted on October 31, 2011 at 4:34pm

    let’s see, we‘ve given Obama’s cronies millions, pelosi’s brother millions, who is it this time?

    Report Post » bum  
    • PilgrimStuckInBizarroWorld
      Posted on October 31, 2011 at 4:39pm

      That is the real question.

      Report Post »  
    • Mil Mom
      Posted on November 1, 2011 at 12:00am

      @bum
      Posted on October 31, 2011 at 4:34pm
      let’s see, we‘ve given Obama’s cronies millions, pelosi’s brother millions, who is it this time?
      ***
      More to the point WHO ALL WAS IT? REMEMBER, THEY HAD UNTIL OCT 30 TO SPEND THE MONEY THEY HAD BUDGETED!!!

      Report Post » Mil Mom  

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