Skip to comments.Obama-backed car battery company files for bankruptcy protection ($118m down drain)
Posted on 01/27/2012 2:42:46 AM PST by sunmars
Ener1, an electric car battery company that the Obama administration awarded a $118 million stimulus grant to expand its operations, filed for Chapter 11 bankruptcy protection Thursday after being unable to repay pressing debts.
The news comes one year after Vice President Biden visited the companys new battery plant in Indiana to highlight its progress with federal funds.
Ener1 is the third company to seek bankruptcy protection among those the Energy Department backed as part of the presidents signature program to invest in clean energy. Solyndra, a California solar-panel maker, and Beacon Power, a Massachusetts energy-storage firm, entered bankruptcy court proceedings in the fall, after having received taxpayer-guaranteed loans of $535 million and $43 million, respectively.
One of Ener1s key struggles has been its reliance on one financially troubled customer, Think. The Norwegian carmaker filed for bankruptcy protection in June 2010.
(Excerpt) Read more at washingtonpost.com ...
Well, if we want to paint him as a failed pres-ent then we can point to shear numbers of companies this administration has invested in that failed.
“This President has been out picking winners and losers with Taxpayer money.
Sadly, though, it seems like he picks more losers than anything else.
That’s a thin record at best and a fireable offense in the coporate world.
Let’s fire Barack Obama on November and make America the winner for once”.
First lesson of capitalism: Markets eventually end inefficient processes.
Biden when he visited them called it ‘Enron1’. Please, I don’t want the government in the venture capital business just as I would not want Bain running the government.
RE: Ener1, an electric car battery company that the Obama administration awarded a $118 million stimulus grant to expand its operations, filed for Chapter 11 bankruptcy protection
It’s OK, Obama said the government has to spend tax dollars to EXPERIMENT. And experiments can of course fail. Give him time and he’ll pick a winner.
I wonder how much of this “Give Giant Grants of Government money to “Green Companies” is nothing more than “Money Laundering for the RNC” and how much if it was investigation would end with perp walks from most of Obama’s cabinet. “
“Anyone know where in Indiana it is?”
Greenfield, 20 miles east of Indianapolis
Yup ..... Turns out a company actually needs customers to buy their products to stay afloat!!!
Maybe next time they should draw up something called a business plan.
It’s about half way between Fountaintown and Maxwell.
What further proves the complete ineptitude of this administration is that they weren’t even smart enough to set the maturity dates on the loans until after the Presidential election (Nov 2012) or to have an automatic equity conversion. Loans have maturity dates. Companies that cannot find a greater fool to invest when their loans mature will result in bankruptcy. And that’s what’s happening with all their corrupt, politically motivated financing scams. All FReepers know that Turbo Tax Timmy and Obamao aren’t as smart as they’d like us to all think.
If the GOP doesn’t have an ad prepared for the fall which juxtaposes the failure of Solyndra and these other recipients of government handouts with Obama’s statement in the State of the Union speech, where he says “no more bailouts, no more handouts”, they are finished. This is a no-brainer. The fastball down the middle of the plate. The hanging curve ball. It is an issue which is simple to explain, simple to illustrate, and which Americans intuitively know is at the heart of the deficit crisis - big government recklessness, waste and cronyism. The election can be won on three issues: the debt, Obamacare, and securing the US-Mexico border. Keep it simple and pound these issues day and night and Obama will be another Jimmy Carter.
Somebody got rich off the American taxpayer and then close up shop. Typical of what is going on now.
Sadly, Bozo is a fan of every team that I'm a fan of the White Sox, Bears, Bulls and Blackhawks. Bears lost NFC Championship Game last year to our arch rivals, Bulls lost the NBA Eastern Finals to the Heat and the only team that won a championship under his regime were the Chicago Blackhawks and I doubt Bozo is a big hockey fan.
His favorite team is the White Sox, my favorite team. The year we won it all he was just a Junior Senator. The White Sox went 11-1 in the Playoffs.
The one game the White Sox lost in the 2005 MLB Playoffs???
Game 1 of the ALCS when Bozo through out the first pitch...........
Taxpayers Take Hit as Layoffs, Bankruptcies Plague Green Firms
National Legal & Policy Center ^ | January 27, 2012 | Paul Chesser
Posted on Friday, January 27, 2012 11:27:57 AM by jazusamo
Federal tax credits, loan and grant programs that expired at the end of last year have plugged the financial flow that made so-called renewables and electric vehicles viable, so they are now shedding employees and going bankrupt, illustrating that the clean industry owed its existence solely to government.
Even with the government money, they are failing. Yesterday Indiana-based Ener1, an energy storage company thatreceived $118.5 million from DOE, filed for Chapter 11 bankruptcy. Despite plans to have 1,400 employees in Indiana by 2015, the company had downsized in the state from 380 to approximately 250 since March. Ener1s stock price fell from more than $4 a share to under a dollar, and the company was booted from the NASDAQ stock exchange in October, when its stock was trading for less than 20 cents.
The Department of Energy seems to have no limit in its willingness to subsidize electric cars, electric trucks, electric school buses, electric delivery vans, batteries for electric vehicles, and charging stations for EVs. Its safe to say that without taxpayer support, these companies or at least the EV-related projects of larger companies like Nissan and GM dont exist.
Excerpted, go to the FR link to read entire article:
Thanks for ping and linking, this is a good piece.
This latest green economic terrorism against America appears to be having problems.
Thanks for posting your great article.
Sickening. This is what happens when bureaucrats, especially liberals, try and pick winners and losers.
Seems that bureaucrats keep coming up with the latter and never the former.......
There's nothing "capitalist" about it.
Obama's "public/private partnerships" are actually fascism in action. And, even for fascism, thoroughly corrupt.
He's learned how to mulct billions in taxpayer funds into the pockets of crooked donors, who then reward him and the Democrat party with laundered donations...and probably slip a little extra into an offshore bank account as a "commission".
He had perfected the technique back in Chicago, as a State Senator -- as demonstrated by this superb 2008 article in (of all places), the Boston Globe! (must've been before they abandoned Hillar...))
Going bankrupt appears to actually be part of the plan.
Consider how many billions of taxpayer dollars Barky has been ultimately responsible for wasting...then re-cycling into political funds.
It may be that corruption has been his objective all along, rather than destruction.