An energy company that received a $43 million loan guarantee through the same federal program that backed Solyndra has followed the path of the failed solar firm and filed for bankruptcy.
Beacon Power Corporation filed for Chapter 11 bankruptcy on Sunday in U.S. Bankruptcy Court in Delaware. The company, which develops energy storage systems based on what are known as “flywheels,” had received the federal guarantee for a 20-megawatt energy storage plant in Stephentown, N.Y., back in August 2010.
The loan was expected to cover the lion’s share of the $69 million project, one of several that Beacon was developing across the country.
But the company’s CEO said in a statement to the court that all those projects are “capital intensive,” and the firm is struggling to attract the additional investment needed to keep everything running. The fact that the company faced being de-listed from the NASDAQ didn’t help, he said.
“At present, the revenues generated from the operation … are not sufficient to fully support those business operations, and the debtors currently operate at a loss,” CEO F. William Capp said in the court statement. “In addition, the current economic and political climate, the financing terms mandated by DOE and Beacon’s recent de-listing notice from NASDAQ have together severely restricted Beacon’s access to additional investments through the equity markets.”
The Massachusetts-based company also received $29 million in grants from the Energy Department and the state of Pennsylvania through separate programs for a plant in Hazle Township, Pa.
Beacon Power Corporation has not responded to a request for comment from FoxNews.com.
Not surprisingly, Beacon Power, like Solyndra, was an Obama campaign supporter.
Obama’s list of crimes and scandals continues to grow without a peep out of his lap dogs at the New York Times or MSNBC.
Related posts:
http://sfcmac.wordpress.com/2011/09/16/more-eco-scam-failures-on-the-horizon-obama-rushes-to-close-more-loan-guarantees/
http://sfcmac.wordpress.com/2011/09/18/another-obama-fundraiser-tied-to-solyndra-eco-scam/
http://sfcmac.wordpress.com/2011/09/18/obama-tried-to-squelch-unfavorable-testimony-on-lightsquared/
http://sfcmac.wordpress.com/2011/09/09/fbi-raids-one-of-obamas-bankrupted-green-projects-congress-to-hold-hearings/