So Many Solyndras: Another DoE Loan Recipient Going Tits Up

It's a mere $43 million this time, so, you know, don't sweat it. Obama wastes that much cash in about eight minutes.

Massachusetts company that received a $43 million Energy Department loan guarantee last year filed for bankruptcy Sunday, a step certain to fuel criticism of federal green energy financing in the wake of the solar company Solyndra’s collapse.

Beacon Power Corp., which develops energy storage systems, filed for bankruptcy protection in the U.S. Bankruptcy Court in Delaware.

As you know, Obama has ordered a 60 day review of the loan processes at DoE, to find out if the correct procedures were followed, without favoritism to connected companies, and with due diligence for the taxpayers' dollars.

Like me, I'm sure you are eagerly awaiting the conclusions of this report, and completely at a loss as to what it will say.

Whoops: Another bankruptcy, this one of a company which would supposedly deliver high-speed broadband to remote rural areas.

The Bush Administration actually approved the loan for this company, Open Range. But this might be a Tale of Two Cronies, with a new crony favored as a new administration comes to town -- the FCC turned down Open Range's request for an extension (to give it time to correct its previous problems) but they were turned down.

The FCC’s handling of the matter has come under scrutiny by lawmakers partly because the agency promoted a similar venture called LightSquared about the same time it was turning its back on Open Range. Critics of the FCC have accused the agency of favoring LightSquared because it is backed by Democratically connected hedge fund financier Philip Falcone.

“There is clearly the perception of favoritism,” said Tim Farrar, an independent analyst at TMF Associates. Farrar said his consultancy has no financial interests in LightSquared or Open Range’s venture. A similar charge was levied by Globalstar in a recent letter to the FCC.

posted by Ace at 02:14 PM

| Access Comments