Solyndra was in technical default on its loan on 2010, yet DoE extended more credit

Thomas Lifson
It is starting to look as though all the usual rules were ignored in the rush to shovel taxpayer money at Solyndra,even to the point of overlooking technical default on its loan conditions.  Deborah Soloman of the Wall Street Journal reports: Solyndra LLC had such steep financial problems in late 2010 that the company violated terms of its loan-guarantee agreement with the Department of Energy and technically defaulted on its $535 million loan, according to people familiar with the matter. The failed solar-panel maker, which is under numerous criminal and congressional investigations, ran so short of cash in December 2010 that it was unable to satisfy certain terms of its U.S. loan agreement, these people said. The agreement required Solyndra to provide $5 million in equity to a subsidiary building its factory but cash-flow problems prevented those payments. (snip) Solyndra's problems came to a head in November 2010 when it told the Energy Department it needed $150 million to...(Read Full Post)

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