Bankruptcies of Federally Backed Green Energy Companies Continue

The Obama administration's problems continue to mount because of its massive financial support of the so-called green industry. Perhaps the most well-known example of such boondoggles is the solar panel firm Solyndra, which went bankrupt last fall after a federal loan guarantee of $535 million. And there have been a string of other such clean energy company bankruptcies since then, at a huge waste of taxpayer money.

This week, yet another clean energy company heavily underwritten by federal loans, Abound Solar in Colorado, declared bankruptcy, leaving the taxpayers on the hook for $70 million.

According to Northern Colorado Business Report,

Abound Solar is estimating its liabilities amount to $100 million to $500 million, making its financial collapse one of Colorado's largest corporate bankruptcies in recent memory.

Abound last week announced it planned to seek bankruptcy but left unclear whether it would try to reorganize under Chapter 11 or file for Chapter 7. This week, in U.S. Bankruptcy Court for the District of Delaware, it clarified its intent.

It filed Chapter 7, meaning the company intends to halt its operations and dissolve.

And the problem with these massive federal loans supporting failed operations is not limited to solar projects. Nevada Geothermal Power, which has received $98.5 million in federal loan guarantees, is running into serious difficulties paying its bills after having operated at a loss for several years.

In a report issued for the period ending March 31, 2012, the firm's auditors stated:


[link to thenewamerican.com]