RIJIMMY
11-01-2011, 01:37 PM
we have to support struggling companies and stop rewarding wall st!
oops....
Second clean energy loan company files for bankruptcy
Posted by:
CNN Chief White House Correspondent Jessica Yellin
A second clean energy company that received a loan guarantee from the Department of Energy has filed for bankruptcy. According to their website, Beacon Power received $43 million loan guarantee from the Department of Energy. The company was working on a new technology that would allow the nation’s electricity grid to store energy by constructing what, on the company’s website, they call “a state of the art energy storage facility in Stephentown, New York”.
The company also received $26 million in stimulus grants from the Department of Energy.
A White House official says Beacon’s finances protections will be part of the outside review of all the administration's clean energy loan guarantees, which was ordered by White House Chief of Staff on Friday.
In a statement Damien LaVera, a spokesman for the Department of Energy, says “Protecting taxpayer dollars remains the top priority for Secretary Chu and the Department, which is why we were careful to include many protections for the taxpayer in the loan guarantee for the Stephentown project.” He goes on to explain taxpayers are protected because the company’s Stephentown plant was used as collateral for the loan and the plant is still operating, the US is first in line to be paid back, and the loan was made to that plant not to the parent company which filed for bankruptcy. Additionally $4 million of the $43 million loan has not been used. LaVera says “the loan was set up in a way that ensures the Department is not directly exposed to the liabilities of the parent company” and it’s the parent company that filed for bankruptcy.”
fyi - ALL the tarp $ was paid back in full, with a profit......
oops....
Second clean energy loan company files for bankruptcy
Posted by:
CNN Chief White House Correspondent Jessica Yellin
A second clean energy company that received a loan guarantee from the Department of Energy has filed for bankruptcy. According to their website, Beacon Power received $43 million loan guarantee from the Department of Energy. The company was working on a new technology that would allow the nation’s electricity grid to store energy by constructing what, on the company’s website, they call “a state of the art energy storage facility in Stephentown, New York”.
The company also received $26 million in stimulus grants from the Department of Energy.
A White House official says Beacon’s finances protections will be part of the outside review of all the administration's clean energy loan guarantees, which was ordered by White House Chief of Staff on Friday.
In a statement Damien LaVera, a spokesman for the Department of Energy, says “Protecting taxpayer dollars remains the top priority for Secretary Chu and the Department, which is why we were careful to include many protections for the taxpayer in the loan guarantee for the Stephentown project.” He goes on to explain taxpayers are protected because the company’s Stephentown plant was used as collateral for the loan and the plant is still operating, the US is first in line to be paid back, and the loan was made to that plant not to the parent company which filed for bankruptcy. Additionally $4 million of the $43 million loan has not been used. LaVera says “the loan was set up in a way that ensures the Department is not directly exposed to the liabilities of the parent company” and it’s the parent company that filed for bankruptcy.”
fyi - ALL the tarp $ was paid back in full, with a profit......