Biden visits Enerdel
Posted on 01/26/2012 11:22:58 AM PST by Sub-Driver
Obama-backed electric car battery-maker files for bankruptcy By Andrew Restuccia - 01/26/12 11:55 AM ET
An Indiana-based energy-storage company, whose subsidiary received a $118.5 million stimulus grant from the Energy Department, filed for bankruptcy Thursday.
Ener1 is asking a federal bankruptcy court in New York to approve a plan to restructure the company’s debt and infuse $81 million in equity funding.
“This was a difficult, but necessary, decision for our company,” Ener1 CEO Alex Sorokin said in a news release. “We are extremely pleased to have the strong support of our primary investors and lenders to substantially reduce the company’s debt.”
The company said it hopes the plan will “support continued operation of Ener1’s subsidiaries and help ensure that the restructuring will not adversely impact their employees, customers and suppliers.”
The Energy Department in 2009 approved a $118.5 million stimulus grant for EnerDel, a subsidiary of the company that develops lithium-ion batteries used in electric vehicles. The company has so far spent $55 million of the federal funding.
“While it’s unfortunate that Ener1, the parent company, has entered a restructuring process, the new infusion of $80 million in private capital demonstrates that the technology has merit,” Energy Department spokeswoman Jen Stutsman said in a statement.
“The restructuring is not expected to impact EnerDel’s operations and the company has made clear that they do not expect to reduce employment at the site.”
EnerDel has received support from Republicans, including more than $4 million in federal grants under the George W. Bush administration.
The Obama administration's grant was part of a broader program aimed at promoting the development of electric-vehicle battery technology.
President Obama touted the program in his State of the Union address this year.
“In three years, our partnership with the private sector has already positioned America to be the world’s leading manufacturer of high-tech batteries,” he said.
At the time, EnerDel said the grant would help the company double its production capacity and create 1,700 jobs. But the company has faced major financial problems in recent months.
Ener1’s decision to file for bankruptcy will likely draw the attention of House Republicans, who are investigating the bankruptcy of Solyndra, the solar panel maker that received a $535 million Energy Department loan guarantee in 2009.
The GOP has pummeled the White House over Solyndra, raising broader concerns about the administration’s investments in clean-energy companies.
another Obama success story.
How stimulating.
He certainly has the Midas Touch................
The list, Ping
Let me know if you would like to be on or off the ping list
Gee, I need to start some kind of green energy company - at least get a name and an entity through Legal Zoom - and then donate to Obama making it clear that I’m a woman owned business and then wait for my windfall. Then pay myself a huge salary and then go bankrupt.
Voila...my retirement suddenly fully funded by my fellow citizens.
Obama—the fooler—was himself fooled by the Green energy line—the con that we could save the earth and recover the economy in one swift motion—They tried it in Spain and it didn’t work—we tried it and failed—Its the Volt all over again. He drank the ecology kool aide and thought—if he wished hard enough it would happen—it was a con job from the get go. If we sink more money into this Green Propaganda—we will only achieve the same results. We might as well be investing in perpetual motion machines.
You’ll notice how important it was to note that “Bush” loaned then $4Mil, when it was actually a DEMOCRAT EARMARK under the Democrat Congress??
It is an attempt at equivilency, so the media libs can say, “SEE!!!?? BUSH loaned them money, too, SO YOU CANNOT COMPLAIN ABOUT IT!!”
Reminds me of The Bamboo Lounge in Goodfellas.
Insanity. This administration is pissing away taxpayers hard-earned money and few seem to care.
It’s not like there’s a deficit or anything!
If the RNC and the Republican House and Senate campaign committees had a lick of sense, they would run some commercials showing lists and examples of stimulus money failures, especially the “green” ones (as most of us would rather have jobs or pay less for energy than the extra cost of the green deals). The bulk of the stimulus money went out under Obama and votes by Congress when the Democrats held both houses, so the blame should be attached to the Democrats.
Plus, the remaining candidates in the Republican primary should focus on our country’s problems and how they would address them, instead of cutting each other to pieces (doing Obama’s hit work).
Wow... I've been wondering what's become of good old Alex. Was good friends with him in HS, and for several years afterward... he founded a company that took over failing companies, got real busy and we lost touch. Just found a pic of this one, and I recognize that same sh**-eating grin he had as a kid (the biggest prankster in the school too).
The CEO Charles Gassenheimer was paid $4.9 million in 2010. Not bad for a company with net sales of $77 million and a net loss of $68 million!
Well, at least we know where the money went. They pissed it away, and payed themselves well for doing it.
Biden visits Enerdel
Ener1 is asking a federal bankruptcy court in New York to approve a plan to restructure the company’s debt and infuse $81 million in equity funding.
I think I'll scam Obama by asking for 30 million to start an electic bicycle.
the bike will have lights generated by people pedaling the bicycles. (don't tell ZERO, but it was done in the 1970 on my bike).
Just think of what I can do with 30 million...
Do I need to put a /s?
In all honesty, who was the CFO for this company -- Bernie Madoff??
The company has experienced a series of setbacks this year. Most recently, several lawsuits have been filed, claiming the company misled investors about its financial condition.
Some people never learn....the Government has no business "Partnering" with the private sector. But especially Obama...he ruins everything he touches.
How dare you criticize capitalism by playing the politics of envy card. He did his job. He managed to suck 115 million dollars from our collective wallets and into his company's coffers. That's not even a 5% commission.
Are you some kind of OWS Troll? This is capitalism in action. You got a problem with that?
I'm off to download a stimulus grant application for my new green business scam errr proposal.
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