Solyndra sold assets cheap for fast cash

[Horn6721]

to
wait for it
wait for it
sold to to a newly formed corporate entity closely tied to the company’s biggest investors, records show.
Shocked I am

from link
"Fast running out of money, solar-panel maker Solyndra LLC last summer sold off nearly $60 million worth of inventory for less than $20 million .
Backed by $535 million in federal loan guarantees but burning through the little cash it had left, Solyndra made its first sale in late July to a corporate entity that had been formed just a day earlier. Three more transactions followed over the next few weeks with the same buyer, Solyndra Solar II.
"Todd Zywicki, bankruptcy professor at the George Mason University School of Law, said it’s not unusual for troubled companies to sell off assets to improve liquidity. But he said the inventory sales figure cited by Solyndra — $58.1 million in inventory for $17.5 million in cash — seems unusual.
The test under the bankruptcy code is whether the sale was for reasonably equivalent value and selling inventory at such a huge discount raises real concerns,” he said. “If Solyndra Solar II is owned or controlled by any insiders or anything like that, then it becomes even more suspicious.”
The Link

check out the investors in Solyndra SolarII

 

[mcbrett]

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[ShinerTX]

I'm surprised that Solyndra didn't use some of our money to run a Super Bowl ad telling us how great things are going.

 

[Horn6721]

mcbrett
so you went to the link I provided and posted a paragraph. which you then appeared to ignore
here, think this is salient?
“It could be a problem, however, if there were particular creditors who were benefited by converting the accounts/inventory to cash for some reason or if those assets were converted to cash for less than reasonably equivalent value.”


So nearly 60 million is sold for less than 20 million To the same people who invested in solyndra
and sold it right before they declared bankruptcy.
Only an idiot would think the investors didn't know Solyndra was going bankrupt when they sold more to their own investors the day before they declared bankruptcy.


I never once mentiond bo

 

[mcbrett]

In reply to:

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[MojoMan]

This is the way crony capitalism and political slush funds, such as the "stimulus," work.

1. The money is transferred to the favored company led by people closely connected with Barack Obama, in this case in the form of a "loan".

2. The assets and credit lines of the company are then liquidated fast and cheap, with the proceeds initially transferred to the same people who ran the company into the ground and took the government money to begin with. When the mafia engages in this sort of a scam, it is commonly referred to as a "bust out".

3. A sizable chunk of the proceeds are then returned to the politician who approved the money to begin with, usually in the form of campaign contributions. This is how a corrupt politician like Barack Obama gets his "cut".

And this is just what appears to have happened with Solyndra and the other "green energy" beneficiaries of Obama's political largess, as funded by borrowed money backed by the good faith and credit of the US Government, and ultimately the taxpayers who eventually have to pick up the tab.

This year much of the money is likely to be funneled into Obama's Super-Pac, which he has recently decided to endorse.

 

[mcbrett]

In reply to:

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[MojoMan]

I don't think any of this is a secret at this point.

Congress is investigating Solyndra, but Eric Holder is in charge of the Justice Department, so any real justice is not likely to be had until next January at the earliest.

Fox News talks about this story, but I cannot imagine 60 Minutes giving it any serious coverage.

But you are right about one thing. This is a HUGE story.

 

[hornpharmd]

Solyndra executives seemed to be breaking the law. Hmmm, maybe somebody should prosecute them or something....hmmm

 

[Horn6721]

mcbrett?

seriously take a deep breath and go back and read the paragraph YOU lifted and posted vfrom the link i provided .

The guy you thought made your point is the one who wrote
"“It could be a problem, however, if there were particular creditors who were benefited by converting the accounts/inventory to cash for some reason or if those assets were converted to cash for less than reasonably equivalent value.”

The guy you quoted wrote that and now you are saying that it is a desperate thing to say?
The guy isn't saying this could happen in the future , he is explaining when the action the investors took could be a problem.
Well as we see that is what happened.


It is obvious you didn't even read what you posted and now you are just making a fool of yourself.