Business

Another Solyndra? House Investigates $400 Million Loan to Bankrupt Solar Company

The Obama administration’s fixation on solar power appears to have a suboptimal return on investment. Now reports have emerged that yet another solar startup financed to the tune of hundreds of millions of dollars from the Federal Government, is shuttering after being projected to create over 1000 new jobs. More troubling still is the fact that the company in question, like Solyndra before it, also has suspiciously close connections to a donor with heavy ties to the Democratic party.

Let’s go all the way back to 2008. What a year for liberals that was – Barack Obama won the White House, Democrats took the Senate and House, every liberal pundit within arm’s distance was talking about an unfettered era of Democratic dominance, and people still thought global warming was a threat. If you wanted to start, say, an alternative energy company, that was the time to do it.

Enter Pat Stryker, massively wealthy heiress to supersurgeon Homer Stryker and wealthy Democratic donor. Stryker had gotten it into her head that, like her grandfather, she wanted to try her hand at starting businesses.

Abound Solar Files for Bankruptcy After Receiving $400 Million Subsidy From Government, House Subcommittee to Investigate

Pat Stryker

However, rather than stay in her grandfather’s field – medical technology – Stryker instead created a freeform investment company – Bohemian Companies – which decided to invest in a little startup called Abound Solar. After all, at the time, Solar Energy was all the rage. However, Stryker must have known she’d need her political connections, because along with visiting the White House during President Obama’s term, she also donated over $100,000 to finance the President’s inauguration alone.

Abound Solar Files for Bankruptcy After Receiving $400 Million Subsidy From Government, House Subcommittee to Investigate

Whether this generosity played a role in the Democratic congress’ decision to give Abound Solar a $400 million loan under the expectation that the company would generate roughly 1200 new jobs is something we cannot know. However, that is what happened.

And for roughly four years, that appears to have kept the company running. However, things began to south this March, when Abound laid off 280 workers, much to the consternation of the Federal government, which had given them the loan expecting them to create jobs, not cut them. Now, just four scant months after that initial warning sign, the company is declaring bankruptcy, despite having only used up $70 million of the $400 million loan they received. When a company turns down $330 million, you know it’s realized its business model is unsustainable.

So naturally enough, the House Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending has signaled that they smell a rat and invited former executives with the company to come forward and testify about the circumstances in which the subsidy was received, and why the company found itself unable to continue operations. No word yet as to whether the executives invited will show up, but presumably, this is not the last we’ll hear of this story either way. Green activists are already crying foul, calling this a “climate change denying witch hunt,” but to speak frankly, with their track record, we take that as a sign that something really is seriously wrong.

H/T Joel Gehrke at the Washington Examiner

Comments (57)

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  • LukeAppling
    Posted on July 4, 2012 at 11:21am

    To know Obama is to know crony capitalism. If you give to Obama he gives you not his money but my money through tax dollars mostly to foolish green ventures which have thus far amounted to $100,000,000,000 of wasted green jobs scams to Obama’s campaign contributors. If we don’t oust Obama America becomes Greece and we all lose everything. To change our course we must oust Obama, open the oil and gas spigots as China, Russia, Canada and even Mexico has done and wealth is there with jobs and a rebounding economy something Obama has proven to us he knows nothing about. He is a failure in the FDR mode. After 10 years all that saved FDR was World War #2 his policies all failed and history was rewritten so our children never knew that.

    Report Post »  
    • jrcowboy49
      Posted on July 4, 2012 at 2:52pm

      Offset the taxpayer losses created by the malignant narcissist Obummer with his public retirement benefits and allow him to take responsibility for his failed and destructive policies?

      Report Post »  
  • cykonas
    Posted on July 4, 2012 at 7:57am

    As long as our Federal Government controls as much money as they do the waste will continue. I really think it’s that simple. The only way to prevent the waste is to elect leaders that will insist on putting the Federal Government back into their Constitutional “box”. That will require that many bureaus and agencies, including all of the regulatory agencies, must be closed, not just pared back. Let those responsibilities flow back to the States where they belong. And let the taxes flow back to the States and the people where it belongs.

    If you expect that small reforms, or an austerity program or two is going to get it done I think you’re mistaken. The Federal Government, at least while it is allowed to remain as large as it is, has proven to me BEYOND ANY SHADOW OF DOUBT that they cannot self-regulate. Peace.

    Report Post » cykonas  
    • turkey13
      Posted on July 4, 2012 at 10:41am

      The company hopes you have your eye on the 330 million and think nothing of the little skimpy 70 million. I’m sick of seeing people skimming of a million here and a million there and declaring bankruptcy with a nest egg hid away for their old age. TERM Limits – Term Limits

      “If you put the federal governmebnt in charge of the Sahara Desert, in 5 years there’d be a shortage of sand.” – Milton Friedman

      Report Post »  
    • constitutionparty
      Posted on July 4, 2012 at 11:02am

      Very true… The easiest money to spend is someone else’s. This is the most corrupt President in history and yet he still has so much support and I don’t get it. It just shows how many people don’t have a clue. I’ll bet the $26 gallon green fuel will turn out to be supplied by another Obama supporter.

      Report Post »  
  • blkbelt7
    Posted on July 4, 2012 at 7:27am

    GEEEE…i wonder how much money this company gave to Obama in order to get the money…nothing to see here, keep moving, no money laundering here…nope…keeep moving…ABO/OMG

    Report Post »  
    • rickc34
      Posted on July 4, 2012 at 10:04am

      You know she gave some of that 400 million back to Obama, it make me laugh when you have people out there that still believe that Obama is a Christian, the man is a thief , murderer and a liar and his father is Satan the father of murder, lies and theft . In the last one hundred years the temp has only gone up 1 degree. But global warming is on the way 2nd Peter chap 3 verse 10

      Report Post »  
  • charleyrocks
    Posted on July 4, 2012 at 4:24am

    What a scam!

    Report Post » charleyrocks  
  • Paul_ Revere
    Posted on July 4, 2012 at 3:37am

    SOOOOOOOOOOOOOO Much waste of money. I don’t know how he graduated from a college without basic economics let alone being elected president. Oh wait didn’t his gay partner introduce him to an arabian prince who paid 20 million to make him president of the law review. He was groomed and the election rigged by soros.

    Report Post » Paul_ Revere  
  • cemerius
    Posted on July 4, 2012 at 3:16am

    ha ha ha ha does this surprise anyone? what’s the BIG DEAL? Bernake will just print some more money……how do you like wet ink on your 20 dollar bills?

    Report Post » cemerius  
  • Sr Newk
    Posted on July 4, 2012 at 12:33am

    Its too late to impeach the Obamanation that he is. By the time they draft up the legal mumbo jumbo in lawyer words the November election will be starting. Having Harry Reid-iculous as the leader of Senate the impeachment charge wouldn’t get on the floor for a vote. The best impeachment is to vote out as many of these socialist democraps as we possibly can in both the house and senate.

    Report Post » Sr Newk  
    • docgreen
      Posted on July 4, 2012 at 2:24am

      People think about this. What would happen if we would have used this money in infrastructure or given each Home Owner a low interest Loan to help them with the Housing meltdown? But No, obamantation of desolation gives Green Co. massive amounts of money for what? Its to increase the deficit, to collapse the Dollar! He’s stealing our money, our kids money and whats he doing to us? Its called Slavery and were all going to be Slaves to the Dictator in the oval office! People he never said he was going to spread the wealth within the US. Just the oppisite! He’s spreading it to 3rd world countries and muslim countries. Does averyone remember obama saying he couldn’t do anything about the price of oil and gas? But yet it some how comes down? He told everyone oil was going to cost all of us more, because we were dependent on it! People he’s robbing us Blind while we look at Deathcare, and imigration and other things he’s robbing us blind!

      Report Post »  
    • cykonas
      Posted on July 4, 2012 at 2:26pm

      @DOCGREEN
      Doc, I don’t disagree with you that President Obama is one of the worst when it comes to overspending. But blaming the mess on him, and him alone, lets too many others off the hook. We can‘t let anyone off the hook if we are going to get out of the mess we’re in.

      Here’s some info from the last five administrations. There are two things to note, in my opinion. First they all overspend. Second their projections are not ever even close to the reality once the final numbers are in. (From Broke page 137)
      Administration Projected Actual
      Reagan $1.41T $1.86T
      Bush I $1.04T $1.55T
      Clinton $62.9B** $1.40T **Clinton Admin. projected a surplus but ran deficit
      Bush II $2.14T $4.22T
      Obama $1.84T $1.89T FY2009 Only year available in this book

      The establishment of both major parties have deserted that American people. We should not give any of them a pass. When people tell me that it’s likely that Governor Romney is going to be any better than President Obama these numbers, and others like them, are the root of my skepticism. Does it make any substantive difference if we become financially insolvent by overspending on green energy, or by overspending on housing subsidies? The problem is overspending period and they are all guilty.

      Report Post » cykonas  
  • RebelPatriot
    Posted on July 3, 2012 at 11:22pm

    This is proof how stupid the left truly is.

    Imagine if all this solar money had been invested to frack natural gas.

    We wouldn’t be in a recession and people would have jobs.

    The only thing keeping our economy down is King Hussein and his socialist/progressive idiots.

    Report Post »  
    • MIBUGNU2
      Posted on July 3, 2012 at 11:59pm

      And if some of the stimulus money had actually been put into
      Roads, Bridges and Infrastructure, We would have probably
      been in good shape NOW .. BUT NOOOO, Let’s build eyesores
      all over the Country.. Give our technology to China and then
      compete with them building solar panels.. This Administration
      is NOT the sharpest tool in the shop…

      Report Post » MIBUGNU2  
  • Hobo Boondocks
    Posted on July 3, 2012 at 11:21pm

    As deep throat said, “ Follow the Money.” Even though it used ONLY 70 million! Follow… The… Money! I wonder how much of the loan found its way back to the democratic party campaign contribution fund?

    Report Post »  
  • DADDYWOREAWHITEHAT
    Posted on July 3, 2012 at 10:54pm

    Again…really?
    Can none of their wrongs be stopped?
    He is such a political whore!

    Report Post » DADDYWOREAWHITEHAT  
  • DSTSS2010
    Posted on July 3, 2012 at 10:53pm

    $400,000,000.00 to create 1200 jobs translates to $333,333.34 per job. Wonderful!

    Report Post » DSTSS2010  
  • topperj
    Posted on July 3, 2012 at 10:43pm

    If Obama were a financial advisor, with his track record, he’d be in jail for embezzlement and fraud, which is what he and solar energy are.

    Report Post »  
    • oneshiner
      Posted on July 3, 2012 at 10:54pm

      Wouldn’t that be nice. This prez. has put our country into debt by the Trillions with his stupid/idiocy of trying to bail out failing solar companies. This man has no business sense in his little finger and would rather see us go the way of Greece than to admit he’s dumb as dirt. Stop giving this man our money to play with like monopoly. He’s still a child and we need an adult in the White House.

      Report Post »  
  • 321481
    Posted on July 3, 2012 at 10:19pm

    Obama has his own agenda. Now they say Obama is getting ready to go to war with Iran before November. He will do anything, He plays the tooth fairy on a grand scale with our money. Now they got a naval ship that uses green fuel that costs over $20 gallon, Obama thinks if we buy enough of that green fuel the price per gallon will go down. Well he hasn’t been right yet, he picks loosers. Now we are getting ready to go to war, with ships burning fuel at $20 gallon. We will owe so much to China we will become their colony.

    Report Post »  
    • CrawfishFestival2
      Posted on July 5, 2012 at 12:21am

      Another one of obama’s MONEY LAUNDERING schemes?

      Something must have happened – during the disbursement of the $70 MILLION –

      that $330 MILLION was still available – of the $400 MILLION that was EARMARKED for one of Obama’s political contributors = Stryker.

      Or is the $400 MISSING –
      like Obama’s secret bundler for Wall Street and the Banking Industry = Jon Corzine pulled on MF Global Holdings, Inc. – claiming bankruptcy – with over $1.6 BILLION of investors’ money missing?

      Report Post »  
  • RightThinking1
    Posted on July 3, 2012 at 9:32pm

    See this July 2010 video of Obama crowing about Abound Solar and what a success it will be. Don’t expect replays of this by the MSM..
    http://www.youtube.com/watch?v=R86VqQOtTLY

    Report Post »  
  • MAMMY_NUNN
    Posted on July 3, 2012 at 9:13pm

    If green energy was the way to go we would have done it no amazing breakthrough in green technology has happened so until then it’s a fantasy. The inventers of the past were much wiser than todays.

    Report Post »  
    • anomnomnommm
      Posted on July 3, 2012 at 9:33pm

      Really, Blaze, your source for the climate change debate is Climategate? The page’s subtitle is “Anthropogenic Global Warming, history’s biggest scam”. At least give us a somewhat source so your readers can think for themselves, please.

      Not convincing enough? Try their About page…
      “The goal of Climategate.com is to provide a daily dose of information regarding the world’s greatest scam, climategate, and other information and news to help you in your battle against the Religion of Settled Science to dispute their views on Anthropogenic Global Warming, and in addition, to battle the one-world socialist agenda, which is the movement’s leaders’ real goal.” -http://www.climategate.com/about

      Report Post »  
    • jhrusky
      Posted on July 3, 2012 at 9:34pm

      Green energy is the way to go and we will figure it out. We just have to keep government from prematurely funding companies like Solyndra. If government must fund green energies, they would be best to fund private research firms in how to make solar more efficient. No doubt we will find out how and when those panels are 50+% efficient instead of 20% as they are now, it will be a worthwhile investment.

      Report Post » jhrusky  
    • RJJinGadsden
      Posted on July 3, 2012 at 10:27pm

      Talk about the high cost of being green! It’s costing the Navy 26 bucks per gallon of fuel. The only thing that should be green is Kermit and the reverse side of our money.

      Report Post » RJJinGadsden  
    • RJJinGadsden
      Posted on July 3, 2012 at 10:32pm

      ANOMNOMNOMMM, Feel free to go read your regular Chicken Little Global Whining sites and we really won’t care. But, like almost all libs, you are going to try to tell us what to believe or not to believe. Just like lib vegetarians are not happy being vegetarians until we all are, atheists are not happy until we are all atheists, PETA, well, they are just PETA. It strikes me thought that they should fit and “H” into their title for hypocrisy, since they euthanize a large number of animals too.

      Report Post » RJJinGadsden  
    • docgreen
      Posted on July 4, 2012 at 2:35am

      And obamanation of desolation wants to double down on stuff like this! obama’s a moron!…… Why did people pick an uncapable person like obama to run a business like the US? He’s pathetic! The only people who want him to win our all losers and recipients of our Wellfare system! Keep creating more programs for waste obama! I know your true Goals and its not the betterment of the people in the US! Just the opposite! You hate all of us and want our money. So you can enslave us!

      Report Post »  
    • Link8on
      Posted on July 4, 2012 at 10:47am

      @jhrusky

      Efficient freedomizing energy marketing is the way to go.
      China, with labor slavery practices holds a significant market advantage and Obama’s admin can act to level that.
      Let the green companies (US or otherwise) get funding by their own profits.

      Tarriff the Chinese company products so they will decide to open profitable green energy manufacturing plants (2000 union jobs per plant) following AFLCIO union rules and EPA regulations on US soil for selling to our markets.

      US government and officials should get no cut, and none of the companies should get any federal seed money.

      Report Post » Link8on  
  • Individualism
    Posted on July 3, 2012 at 9:12pm

    do you neo cons still believe we have capitalism now? we have rigged capitalism, where goverment decides who lives and who dies or should i say the corporate/banker owned goverment. any company that takes a bailout aka steals tax payer money Americans needs to boycott to destroy that company. all the companies that got bailouts had inferior service and products to their competitors that didn’t get a bailout.

    Report Post » Individualism  
  • South Philly Boy
    Posted on July 3, 2012 at 8:25pm

    DemonCrat KICKBACKS

    Report Post » South Philly Boy  
  • Gregb
    Posted on July 3, 2012 at 8:22pm

    ahhh Queen (freddie mercury died of aids) had the hit song “Bohemian Rhapsody”….
    and in answer to the first line in the song… green energy is JUST A FANTASY!

    Report Post » Gregb  
  • aChameleon
    Posted on July 3, 2012 at 8:18pm

    So it‘s a climate change denying witch hunt that’s to blame for solar power being unable to compete. Here I thought solar power just cost too much.

    Report Post » aChameleon  
  • Gregb
    Posted on July 3, 2012 at 8:18pm

    America is a nation abundant in fossil fuels. We have learned to use them effectively, cheaply, and with very little harm to our environment.
    The green energy is not cost effective…AT ALL, Let us (Americans) prosper using cheap effective fossil fuels and at the same time continue to work on a green alternative. We are not there yet….. Don‘t destroy a nation to enforce a wrong theology that is not at it’s point in time.
    GET RID OF THE EPA!!!!!! They were good a couple of years ago. They are not any good at this point in time.

    Report Post » Gregb  
    • jhrusky
      Posted on July 3, 2012 at 9:37pm

      We have to find a happy medium common ground. Unregulated fossil fuel burning is not a smart idea either as some will certainly pollute too much and it’s a proven fact that pollution is not a good thing to be breathing in. Green energy will be the way to go when we can make it more efficient, and someone is going to make that breakthrough. While the EPA has not common sense (what government-run agency does?), some ruling body has to ensure abuse is not happening.

      Report Post » jhrusky  
  • IMCHRISTIAN
    Posted on July 3, 2012 at 8:18pm

    What is wrong with him. He doesn’t care about the taxpayers that have worked and worked to get ahead and then money thrown away on a wild dream instead of going slowly. I hope to gosh that all of the bad investments are listed before election time. We deserve better then this and our children deserve more then these wild debts. LOT OF NEGATIVES LISTED ON THE LEFT SIDE OF THE LEDGER. Let’s make a change!!!!!!!!!!!!!!!!!!!!!!!!!!!!

    Report Post »  
  • MODEL82A1
    Posted on July 3, 2012 at 8:17pm

    I’m numb to the constant disgusting acts of this administration. What really makes me sick is the more than 60 million votes he will get in November from people who either don‘t know or don’t care about the corruption and lawlessness. It’s not the Obamas of America that are the problem, it’s the close-to-majority electorate that is the problem.

    Report Post » MODEL82A1  
    • RJJinGadsden
      Posted on July 3, 2012 at 10:35pm

      And as Stalin quoted, It’s not really who votes, but who counts the votes.

      Report Post » RJJinGadsden  
  • RightPolitically
    Posted on July 3, 2012 at 8:10pm

    How many more are out there?

    Report Post » RightPolitically  
  • thibx
    Posted on July 3, 2012 at 8:10pm

    sure that is why she got the loan. oboma and his democrats have to go we need some people with a brain.

    Report Post »  
  • zoro51
    Posted on July 3, 2012 at 8:06pm

    impeach IMPEACH the DAMN SOCIALIST who sold america on BILLS OF GOODS. foisted his green jobs n failed companies.. hes cronies n frieds THEY GOT THE BULK OF ThE BAIL OUTS those of us oin SSA HAVE YET TO GET A COST OF LIVING RAISE.. much less PAY BACK for what weve endoured during this MARXIST DICTATOR WANNA BEA MUSLUM NON AMERICAN BORN weak LEADER IMPEACH HIM NOW

    Report Post » zoro51  
    • Dejavu
      Posted on July 3, 2012 at 8:10pm

      Agreed Zoro, but what do we hear from the repubicans???????? Crickets…….

      Report Post » Dejavu  
    • thibx
      Posted on July 3, 2012 at 8:11pm

      agree

      Report Post »  
    • MODEL82A1
      Posted on July 3, 2012 at 8:19pm

      There is EXACTLY ZERO CHANCE OF IMPEACHMENT!!!!!!!! That is in irrefutable FACT. Now quit yelling at us.

      Report Post » MODEL82A1  
    • anomnomnommm
      Posted on July 3, 2012 at 9:02pm

      Wow…

      Report Post »  
    • Gregb
      Posted on July 3, 2012 at 9:36pm

      EVERYTHING THAT YOU HEAR FROM THE REPUBLICANS IS BEING STIFLED IN THE SENATE. The conservatives have been introducing bill after bill after bill after bill and it is being stopped by Harry Reid.

      Report Post » Gregb  
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