[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

These 5 Acts of Kindness Reveal There’s More to Donald Trump Than Just His Celebrity Persona

Libertarians are Loons

A 66-Year-Old Widow’s Farm Faced Foreclosure… Then Trump SAVED THE DAY!

POLICE: Houston shooter fired 212 rounds

Donald Trump, Draft Dodger: Why It Matters

Americans Who Opt Out of Medicare Must Forfeit Social Security Benefits

Chief Of The CIA’s ‘Bin-Laden’ Unit Tells The World That Al-Qaeda Never Existed

SiriusXM suspends Glenn Beck after guest's Trump comments

POLL: Paul Ryan Is CRUSHING His Trump-Supporting Primary Challenger BY 73 POINTS

BREXIT: Will There Always Be an England?

WSJ’s Stephens: Trump Must Be ‘Decisively Rebuked’ So Republican Voters ‘Learn Their Lesson’

Islamic State Jihadi Posts Slaves for Sale on Facebook

Do “Blue Lives” Matter?

Do “Blue Lives” Matter?

I Don’t Appreciate the Military

Bill Kristol Announces That ‘There Will Be An Independent Candidate’ To Sabotage Donald Trump

Swiss village chooses to pay £200,000 fine instead of accepting 10 refugees as 'they won't fit in'

Holder: Snowden did 'service,' but should still be punished

A 22-year-old 'molded' to vote for Hillary Clinton explains why he and his wife are supporting Trump

Gary Johnson Shoots Himself in the Foot: Throws Out Austin Petersen’s Gun

Stephen Hawking baffled by dynamics of Trump's popularity

The elite one-percent’s ‘Orgy Island’ exposed… you won’t believe this!

Cops Attack Elderly Vietnam Vet at Hospital Over Misunderstanding at Metal Detector

San Diego Cop Makes Instagram Post Begging for a Riot So She Can Hurt People at Trump Protest

It's not as bad as it looks.

D.C. concealed carry applications soar while ‘good reason’ requirement not enforced

Western Europeans Flock To Christian, Traditionalist Hungary To Escape Migrant Crisis

Libertarian Party chair candidate strips on stage at national convention

Black Outrage Over Gorilla Shot To Protect ‘White Privilege’. Just One Problem…

Gunman Among at Least 2 Dead in Texas Shooting That Left 6 Injured: 'They Were Shooting Randomly, Just at Whoever'

Libertarian Party Selects Gary Johnson, William Weld For Presidential Ticket

700 migrants drown

Ron Paul — “This Current Election Cycle Represents the Dumbing Down of America”

Vulgar anti-Trump protester gets his comeuppance and then whines for help like a faggot

18 U.S. Code § 2071 - Concealment, removal, or mutilation generally

Woman Asks A Republican For Directions, What Followed Is PURE GOLD!

Senate sleuths focus on ex-State Department aide in Clinton email ‘cover-up’

Louisiana lawmaker labels Declaration of Independence racist in debate

Time to care about damn emails: Hillary Clinton has a serious legal problem

State Rep Makes Epic Video Explaining Why You Should Never Pay Red Light Tickets — Sets His On Fire

Cops Murder Woman’s Three Dogs, Shooting One Through a Locked Door — To Look for Pot

Lyin' Donald: 101 Of Trump's Greatest Lies

Next EU Prez: ‘Islam Has No Place’… ‘Migrants Change The Character Of Our Country’

Hilariously inappropriate Commercial!

Never mind Trump, GOP uniting under banner: 'Never Hillary'

Venezuela Drifts Into New Territory: Hunger, Blackouts and Government Shutdown

Louisiana Passes ‘Blue Lives Matter’ Law To Make Attacking Cops A Hate Crime

'Pharma bro' Martin Shkreli announces support for Donald Trump

War Crimes of Imperial Japan: A Lesson In Moral Equivalence for Mr. Obama

C3 Corvette Barn Find Represents Awesome Americana at Its Best


Status: Not Logged In; Sign In

Alternative Energies
See other Alternative Energies Articles

Title: World's Largest Solar Plant, With Second Largest Ever Department of Energy Loan Guarantee, Files For Bankruptcy
Source: ZeroHedge
URL Source: http://www.zerohedge.com/news/world ... oan-guarantee-files-bankruptcy
Published: Apr 4, 2012
Author: Tyler Durden
Post Date: 2012-04-04 20:26:50 by hondo68
Keywords: Solar Trust of America, a significant milestone, $2.1 billion loan from DOE
Views: 1257
Comments: 1

Solyndra was just the appetizer. Earlier today, in what will come as a surprise only to members of the administration, the company which proudly held the rights to the world's largest solar power project, the hilariously named Solar Trust of America ("STA"), filed for bankruptcy. And while one could say that the company's epic collapse is more a function of alternative energy politics in Germany, where its 70% parent Solar Millennium AG filed for bankruptcy last December, what is relevant is that last April STA was the proud recipient of a $2.1 billion conditional loan from the Department of Energy, incidentally the second largest loan ever handed out by the DOE's Stephen Chu. That amount was supposed to fund the expansion of the company's 1000 MW Blythe Solar Power Project in Riverside, California. From the funding press release, "This project construction is expected to create over 1,000 direct jobs in Southern California, 7,500 indirect jobs in related industries throughout the United States, and more than 200 long-term operational jobs at the facility itself. It will play a key role in stimulating the American economy,” said Uwe T. Schmidt, Chairman and CEO of Solar Trust of America and Executive Chairman of project development subsidiary Solar Millennium, LLC." Instead, what Solar Trust will do is create lots of billable hours for bankruptcy attorneys (at $1,000/hour), and a good old equity extraction for the $22 million DIP lender, which just happens to be NextEra Energy Resources, LLC, another "alternative energy" company which last year received a $935 million loan courtesy of the very same (and now $2.1 billion poorer) Department of Energy, which is also a subsidiary of public NextEra Energy (NEE), in the process ultimately resulting in yet another transfer of taxpayer cash to NEE's private shareholders.

As Bloomberg notes: "The company joins Energy Conversion Devices Inc., a U.S. solar manufacturer that suspended production last year; LSP Energy LP, the owner of a natural-gas-fired power plant in Mississippi; Ener1 Inc., maker of lithium-ion batteries for plug-in electric cars; solar-panel maker Solyndra LLC; and energy storage company Beacon Power Corp. (BCONQ) in bankruptcy."

And so central planning fails again, and again, and again, and again. But it sure will be better with the centrally planned monetary (and in the absence of a working Congress - also fiscal) policy. Because this time it really will be different.

From Reuters:

Solar Trust of America and several affiliates filed for protection from creditors with the U.S. bankruptcy court in Delaware. It estimated to have as much as $10 million of assets, and between $50 million and $100 million of liabilities.

 

Blythe is about 220 miles (354 km) southeast of Los Angeles.

 

"We have been working with Solar Trust of America for a couple of years in getting this project going," David Lane, Blythe's city manager, said in an interview. "Although the project is not in the city limits, we are the only city within 100 miles. My sense is that with the large investment in what was to have been the world's largest solar power plant, someone somewhere will buy it and build it."

At least someone's reputation will be tarnished as a result of this latest epic failure of the Obama administration to misallocate capital :

Solar Millennium said it has been sued by former Chief Executive Utz Claassen over public statements by company representatives that he claims have damaged his reputation and left him unable to find a job. Solar Millennium said the lawsuit would not directly affect its insolvency proceedings.

Two people, however, who won't be humiliated at all are California Governor Jerry Brown, and Secretary of the Interior Ken Salazar, who reprise the role of Joe Biden, last seen praising not only MF Global's Jon Corzine, but that other epic administration failure: Solyndra. Watch them praise the groundbreaking for the Blythe facility.

Epic embarrassment. And not even a full year ago.

But before that, of course, we had the funding of the plant with a $2.1 billion loan guarantee from the US Department of Energy, the second largest ever, smaller only than Georgia Power's $8.33 billion loan guarantee.

From the DOE:

U.S. Energy Secretary Steven Chu today announced the offer of a conditional commitment for a $2.1 billion loan guarantee to support Units 1 and 2 of the Blythe Solar Power Project, sponsored by Solar Trust of America, LLC. The concentrating solar thermal power plant includes two units comprising a combined 484 megawatt (MW) generating capacity, an eight-mile transmission line and associated infrastructure. The project will be built adjacent to the City of Blythe in Riverside County, California and is expected to create over 1,000 construction jobs and approximately 80 operations jobs. The plant is estimated to avoid over 710,000 tons of carbon dioxide emissions annually, equivalent to the annual greenhouse gas emissions from over 123,000 vehicles.

 

“Loan guarantees play an important role in facilitating the development and deployment of innovative technologies at massive scope and scale,” said Secretary Chu. “Continued investments like this project make solar power more efficient and cost competitive while creating thousands of jobs and strengthening the economy.”

 

“California is the national leader in clean energy, and our great state is poised to become the world leader in renewable energy generation,” said Governor Jerry Brown. “I commend President Obama and Secretary Chu for making another major investment in California.”

 

“This clean energy project will create more than 1,000 jobs and strengthen the economy of Riverside County. Investments like this one are critical to reducing America’s dangerous dependence on foreign oil, protecting our children from pollution and creating clean energy jobs here in California,” said Senator Barbara Boxer.

And while we do not know just how much the government will have to pay out of pocket, we do know that STA had at least $50 million in debt at filing.

What we do know for sure is that at least the firm's financial advisors made money on the deal. From the company's Investors page:

World-Class Financial Advisors

In October 2009 Solar Trust engaged Citigroup Global Markets Inc. and  Deutsche Bank Securities, Inc. as advisors to assist in securing more than $6 billion in financing for construction of the company’s solar  power plants in California and Nevada. Citigroup and Deutsche  Bank are also providing advisory services for Solar Trust’s efforts to  develop models for debt and equity project financing for  its solar power plant projects.

Great job there Citi and Deutsche: can you please advise us how much in taxpayer cash you received as part of your incalculable "advice" please?

Also, as noted earlier on, as part of its first day filings, the company was prompt announce the procurement of DIP funding (link), which will come in the form of a $22.3 million secured loan (against what assets?) at Libor + 800bps, courtesy of NextEra Energy Resource, LLC. The same NextEra featured in the following press release:

NextEra Energy Resources' subsidiary closes on $935 million financing and secures a DOE loan guarantee for its Genesis solar project

 

JUNO BEACH, Fla. – NextEra Energy Resources, LLC, announced that its subsidiary, Genesis Solar, LLC, has closed on construction and term financing consisting of $702 million in project bonds, a $150 million project term loan facility and an $83 million project letter of credit facility. The U.S. Department of Energy has provided a loan guarantee of 80 percent of the principal and interest on the project bonds and project term loan under its Financial Institution Partnership Program. Proceeds from the financing will be used primarily for the construction of the Genesis project, a 250-megawatt utility-scale concentrating solar thermal generating facility featuring proven parabolic trough solar thermal technology, located in Riverside County, Calif.

 

“This financing marks a significant milestone in the development of the Genesis project,” said Armando Pimentel, executive vice president and chief financial officer of NextEra Energy, Inc., the parent of NextEra Energy Resources. “We are very pleased with both the strong investor reception for this financing, which we view as a validation of our solar development efforts, and the receipt of a loan guarantee from the Department of Energy Loan Programs Office.”

That's right: one ward of the state, bailing out another ward of the state, all to reduce those evil carobn emissions. Although that is not all. NextEra is also a subsidiary of the publicly traded, albeit with very private investors, NextEra Energy (NEE). Which means that every dollar extracted out of Solar Trust via the DIP, and ultimately via a Credit Bid in which NextEra will acquire the STA assets at pennies on the dollar, will go straight to NEE's shareholders. Who are these shareholders you ask? Here they are: spot the odd one(s) out. 

And that is how in crony America taxpayer money goes from one insolvent pocket, to another, to Wall Street, all under the guise of idealistic pursuits and clean energy.

There is more to this story but we will stop here as we have had enough.

For those interest here is the first day affidavit, as well as the DIP term sheet. And the last time we saw an Org Chart this fun, the company's name started with En and ended in ron.


Poster Comment:

Lots of money disappearing down a green energy suck hole. (3 images)

Post Comment   Private Reply   Ignore Thread  


TopPage UpFull ThreadPage DownBottom/Latest

#1. To: hondo68 (#0)

It will play a key role in stimulating the American economy,” said Uwe T. Schmidt, Chairman and CEO of Solar Trust of America and Executive Chairman of project development subsidiary Solar Millennium, LLC."

Aahh yes, the technology that is going to save us all and they can't even stay in business..... typical Leftard boondoggle, just like electric cars and windmills!!!

By the way who was that guy that used to tilt/joust with windmills??? Leftards remind me of him...

"If you voted for Obama in 2008 to prove you're not a racist, you'll need to vote for someone else in 2012 to prove you're not an idiot."

CZ82  posted on  2012-04-05   6:35:23 ET  Reply   Trace   Private Reply  


TopPage UpFull ThreadPage DownBottom/Latest

[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Please report web page problems, questions and comments to webmaster@libertysflame.com