Thread: DOE-backed solar firm files for bankruptcy: 1,100 Jobs

DOE-backed solar firm files for bankruptcy


Solyndra's manufacturing plant received a visit just last year from President Obama. | Reuters

By DARREN GOODE | 8/31/11 2:23 PM EDT

Solyndra, a major solar manufacturer that has been the subject of a House GOP probe regarding a $535 million DOE loan guarantee, is filing for bankruptcy and laying off 1,100 workers — a step sure to raise even more awkward questions about the Obama administration’s green jobs agenda.

The administration has touted the company as a successful recipient of stimulus funds, and its Fremont, Calif., manufacturing plant received a visit just last year from President Barack Obama.

But on Wednesday, the company announced that it has suspended its manufacturing operations and intends to file a petition for Chapter 11 bankruptcy relief.

“Regulatory and policy uncertainties in recent months created significant near-term excess supply and price erosion,â€

So Much for the Dictators green jobs.

It was quite a fall from late 2009, when Solyndra received a $535-million federal loan guarantee as part of the $787-billion economic stimulus package. In May 2010, company executives hosted President Obama on a factory tour and said they expected to add employees.

Solar panel firm Solyndra to cease operations

The Fremont, Calif., company, which had received a $535-million Energy Department loan guarantee and hosted a tour by President Obama, plans to seek bankruptcy protection.

Solyndra, a renewable energy firm that became the darling of the Obama Administration, shut the doors to its California headquarters today, raising sharp questions from the administration's critics about political favoritism in the federal loan program.

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