Wednesday, August 29, 2012

More great moments in the history of crony capitalism


The gift that keeps on giving...

Not everyone lost out in that train-wreck that was Solyndra; the now-bankrupt solar panel firm that received a $537 million loan guarantee from the highly suspect Department of Energy green loan program back in 2009.

Via the Free Beacon the Wall St. Journal reports:

Argonaut Ventures I LLC—a private-equity fund linked to George Kaiser, a fundraiser for President Barack Obama—and Madrone Partners LP are set to pilot a reorganized shell company out of the wreckage of Solyndra, part of a Chapter 11 plan that promises scant repayment of a $528 million federal loan.

The reorganized shell company could be a vehicle to transform the money Solyndra lost in the solar-panel-manufacturing business, losses that total “significantly more than one-half billion dollars,” into future tax breaks for the private-equity firms, according to the DOE and IRS.

Bankruptcy filings reveal that Argonaut and Madrone could potentially write-down the Solyndra losses saving themselves hundreds of millions of dollars of future income taxes.

And similar to the GM and Chrysler bankruptcy cramdown, private investors, like Argonaut, will be given priority status over the tax-payers in a loan restructuring deal worked out between Solyndra and the DOE back in 2011.

Please remember this sort of shenanigans that have been rampant with this administration when you hear about the success of their green energy program next week.

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