Only days before Solyndra’s bankruptcy, the Obama administration mulled over a last-minute bailout plan that would have granted the federal government part ownership of the solar panel-maker. The financial rescue would have infused cash into the company and delegated a new board of directors, two of whom would have been appointed by the Energy Department. The bailout plan was orchestrated by the investment banking firm Lazard, which was paid one million dollars to analyze the company’s financial options — and whose Vice Chairman is a major Democratic donor who contributed more than $2,000 to Obama’s 2008 campaign. However, the plan was ultimately rejected by the Energy Department.
E-mails released in early October showed that the Obama administration restructured the loan guarantee in February after revelations of Solyndra’s financial woes. Because private investors agreed to contribute only if the repayment terms were modified, the restructuring plan allowed $75 million in private investments to be shuffled before taxpayers’ financial interests if bankruptcy ensued.
Shortly after the loan restructuring, Lazard was hired to monitor Solyndra’s financial standing, and in an August 17 memo to the Energy Department, the investment company resolved that a bailout plan was necessary. Without action, the loan would "likely result in little recovery to the DOE," the letter read.
Click here to read the entire article.
Photo: AP Images