Nevada geothermal company that received $98 million loan guarantee is failing

The idiocy of these loan guarantees continues to be exposed. Nevada Geothermal Power (NGP) was bleeding money even when the government stepped in with the loan guarantee. And yet, Senator Harry Reid approved of the loan guarantee, saying that Nevada was set to become "the Saudi Arabia of geothermal energy." Energy Secretary Chu also gave NGP a thumbs up. The problem, is that the company has been in serious financial trouble for years. Washington Times: "The company's ability to continue as a going concern is dependent on its available cash and its ability to continue to raise funds to support corporate operations and the development of other properties," NGP auditors said in a financial statement for the period ending March 31. "Consequently, material uncertainties exist which cast significant doubt upon the company's ability to continue as a going concern," the statement said. Mr. Reid, a Nevada Democrat who led passage of the $814 billion stimulus bill and worked to include the...(Read Full Post)