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As Another Gov’t-Funded Energy Co. Goes Under, Obama Admin Announces More Loans

And here's Biden's drunken, slur filled rant

“The company, Ener1, received a $118 million grant from DOE [Department of Energy] in 2010 as part of the president’s stimulus package,” writes the Heritage Foundation’s Lachlan Markay. “The money, which went to Ener1 subsidiary EnerDel, aimed to promote renewable energy storage battery technology for electrical grid use.”

Today, Ener1 announced it was filing for Chapter 11 bankruptcy.

Despite the generous federal support Ener1 received (Vice President Biden even visited Ener1, January 26, 2011, the day after the President pledged in his State of the Union address to put “one million advanced technology vehicles on the road by 2015” with the help of taxpayer funding), and like several other now-bankrupt energy companies, Ener1 was “racked by problems.”

See the Vice President mistakenly, but appropriately, refer to the bankrupt company as “Enron one”:

In October, NASDAQ delisted the company due to non-compliance with Securities and Exchange Commission filing requirements. A month later, the company’s president, chief executive, and top financial officer were fired,” Markay writes.

Here‘s what the company had to say about Thursday’s news:

Ener1, Inc. (OTC: HEVV) (the “Company”) today announced that it has reached agreement with its primary investors and lenders on a restructuring plan that will significantly reduce its debt and provide up to $81 million to recapitalize the Company to support its long-term business objectives and strategic plan.

To implement this restructuring plan, the Company has voluntarily initiated a “pre-packaged” Chapter 11 case in U.S. Bankruptcy Court in the Southern District of New York, in which it is requesting that the Court confirm a pre-packaged Plan of Reorganization to implement the restructuring. The Company filed a proposed Disclosure Statement and Plan of Reorganization with the Court and anticipates completing the restructuring process in approximately 45 days…

The pre-packaged restructuring plan, which has been unanimously accepted by all of Ener1′s impaired creditors, provides for a restructuring of the Company’s long-term debt and the infusion of up to $81 million of equity funding, which will support the continued operation of Ener1′s subsidiaries and help ensure that the restructuring will not adversely impact their employees, customers and suppliers. Of this amount, a new debtor-in-possession (DIP) credit facility of up to $20 million will be available upon Court approval to support working capital needs during the restructuring. The balance, for a total of up to $81 million, will be available over the four years following Court approval of the restructuring plan and subject to the satisfaction of certain terms and conditions.

As mentioned in the above, Ener1 is not the first government-funded “green energy” initiative to go bankrupt. In fact, Ener1 isn’t even the first government-sponsored energy storage technology company to go bankrupt.

Beacon Power beat them to the punch.

“Beacon Power, which manufactures flywheel energy storage technology, received a $43 million loan guarantee from the same stimulus program that funded Solyndra [emphasis added],” Markay writes. “Despite having used $3 million marked for loan repayment to continue funding its daily operations, Beacon filed for Chapter 11 in November.”

And as if this didn’t seem bad enough, on the very same day Ener1 files for Chapter 11, the Obama administration announces more “clean energy” loan guarantee.

“Agriculture Secretary Tom Vilsack today announced his second bio-fuels loan guarantee in a week, revealing that the Agriculture Department (USDA) is slated to loan an Oregon biorefinery $232.5 million for a project expected to create 65 jobs and support 38 others [emphasis added],” The Washington Examiner’s Joel Gehrke writes.

“This project and others like it will help to establish a domestic advanced biofuels industry that will create jobs here at home and open new markets in the Pacific Northwest and across America,” Vilsack said in a statement.

So, what’s the reasoning behind this loan guarantee?

“USDA offered the loan guarantee as an example of President Obama fighting global warming while increasing energy security and helping the rural economy,” Gehrke writes.

The agreement announced today is similar to a $25 million loan guarantee USDA approved last week for an Iowa project “expected” to create 38 jobs.

Added: Jan-26-2012 Occurred On: Jan-26-2012
By: aranger45
Tags: Another, Gov’t-Funded, Energy Co., Goes, Under, Obama, Admin, Announces, More, Loans
Location: New York, New York, United States (load item map)
Views: 3915 | Comments: 17 | Votes: 2 | Favorites: 0 | Shared: 0 | Updates: 0 | Times used in channels: 2
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  • Or, you could approve the Keystone XL pipeline, create thousands of high-paying jobs and limit reliance on mid-east oil by trading with your closest ally.

    Just saying, Obama.

    Posted Jan-26-2012 By 

    (5) | Report

    • @jum_runky warren buffet , obamas best friend would lose millions,,,,,,,,,,,,,,,,,,,,,,,,,

      Posted Jan-27-2012 By 

      (1) | Report

    • Comment of user 'htos1' has been deleted by author (after account deletion)!
  • when is it enough. America is tired of these jokers.. draining it dry.

    Posted Jan-26-2012 By 

    (4) | Report

  • Comment of user 'Amusing' has been deleted by author (after account deletion)!
  • More dumb decisions. Enough!

    Posted Jan-26-2012 By 

    (3) | Report

  • Comment of user 'htos1' has been deleted by author (after account deletion)!
  • Come on now... he's not intoxicated. This is what you look like when your reading a speach and you have no idea what your talking about.

    Posted Jan-27-2012 By 

    (1) | Report

  • that 118 million could have created a few infrastructure jobs,..
    but yeah,..why not just give it to a pipe dream team and let them liquidate it right?
    another Obama blunder,..

    Posted Jan-27-2012 By 

    (1) | Report

  • The DOE needs to be shut down,along with the Dept of Education,and few more useless entities milking us dry,.

    Posted Jan-27-2012 By 

    (1) | Report

  • Spend our way into oblivion Obama...

    Posted Jan-27-2012 By 

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  • Comment of user 'rclark951' has been deleted by author (after account deletion)!
  • It's all a scam, there using the bogey companies to siphon money out of the tax payers. It's the biggest corruption scandal.

    Posted Jan-27-2012 By 

    (0) | Report

  • Republican Field Head to Head Polling VS Obama
    *data from Real Clear Politics (dot) com

    Un-named Republican: 23 months worth of polling (69 polls total)
    42 wins, 6 ties, 21 losses – 60.87% winning percentage
    Averages beating Obama by 1.2%

    Romney: 33 months worth of polling (136 polls total)
    28 wins, 14 ties, 94 losses – 20.59% winning percentage
    Averages losing to Obama by 1.8%

    Gingrich: 21 months worth of polling (71 polls total)
    2 wins, 1 ties, 68 losses – 2.82% winning percentage
    Av More..

    Posted Jan-27-2012 By 

    (-1) | Report

  • so why don't you rednecks support ron paul again? I don't get it...

    Posted Jan-26-2012 By 

    (-2) | Report