Bankrupt Solyndra releases documents detailing government loan

New York, NY- The now bankrupt solar energy company, Solyndra LLC, the recipient of a $ 528 million government loan, released documents from an independent investigator, which showed no wrong-doing on the part of company.

Solyndra and their bankruptcy attorneys filed for debt protection last year, just two years after they received the loan. The documents revealed that the loan was guaranteed by the Bush Administration and his administration’s energy policy. But the funds were awarded by the Obama administration as part of an economic stimulus package.

Chief Restructuring Officer R.Todd Neilson, the independent investigator who is also overseeing the company’s liquidation, concluded that the loan was not used inappropriately. The investigator concluded that Solyndra’s bankruptcy can be attributed to increased competition from Chinese manufacturers and a decline in demand for solar panels in Europe, which is a large consumer of solar energy technologies.

Neilson also concluded that the Department of Energy was aware of the risks of investment and was informed of the Solyndra’s deteriorating financial situation.

After Solyndra went bankrupt, their offices were raided and a federal investigation was launched to determine if they misappropriated funds from the federal loan.

Solar technologies and alternative energy companies are new and emerging businesses, but the dominance of fossil fuels make it harder for these companies to thrive. Over the past year, at least three alternative energy companies have been forced to retain bankruptcy lawyers and ask for relief from their debt.

Although many companies may be resistant to the idea of filing for bankruptcy, they sometimes have no choice. Advice from a bankruptcy attorney can show a business the benefits of seeking bankruptcy.