Government stands to recoup some of energy loan from bankrupt company
February 6th, 2012
05:44 PM ET
11 years ago

Government stands to recoup some of energy loan from bankrupt company

(CNN) – The federal government is poised to recoup 70 cents on the dollar for a clean energy loan made to Beacon Energy after it filed for bankruptcy last fall.

The $43 million investment in the energy storage company, of which the government expects about a 70 percent return, is expected to be paid both in cash and debt, the company is purchased by private equity firm Rockland Capital.

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Some Republicans compared this loan guarantee to one provided to Solyndra, and the House Oversight and Investigations Subcommittee said it would investigate this and similar loans. The Department of Energy, which provided the loan guarantee, said the two scenarios were different, and the White House ordered an investigation in October.

"The Department is pleased that this agreement improves the prospect of recovering taxpayer funds," Department of Energy spokesman Damien LaVera said in a statement.

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Filed under: Energy • White House
soundoff (10 Responses)
  1. Woman In California

    More BAD news for Willard.

    February 6, 2012 06:15 pm at 6:15 pm |
  2. Claudia, Houston, Tx

    Solyndra's loan is in the process of being recouped also.

    February 6, 2012 06:20 pm at 6:20 pm |
  3. Thomas

    And what about Solyndra ?

    Get some money back and if anybody committed any crime , send them to jail !

    February 6, 2012 06:26 pm at 6:26 pm |
  4. Little Jimmy Truth

    Who did work whoever job on this?

    That's Obama and his own job, not GOP's. Now USA lost solar energy and this clean energy by Obama.

    Obama failed to fix it.

    February 6, 2012 06:40 pm at 6:40 pm |
  5. Anonymous

    Surely the radical rightwing hatemonkeys will soon be all over this, trying to spin some fairy tale full of exclamations about "SOLYNDRA!" and others. What those hatemonkeys don't know, won't learn, and will refuse to acknowledge, is that government losses on the energy loans are BELOW what was "budgeted." Yes, believe it or not, the same phony fools who scream "government should be run like a business" can't even recognize when a part of government is run in a business-like manner, and run well. Like all start up investors, the government knows they won't all be winners. Like all start up investors, the government had to budget around an assumed failure rate. The current performance of the loans is BETTER than expected because the actual failure rate is lower than the assumptions used for budgeting. All these facts will, of course, be completely lost on the GOBP wingnuts who hate green energy programs and will lie and make things up to support their rantings.

    February 6, 2012 07:18 pm at 7:18 pm |
  6. stars

    Bush need to pay our tax money back from the Irag war that was bought on by lies. It time for him to pay up.

    February 6, 2012 07:25 pm at 7:25 pm |
  7. S.B. Stein E.B. NJ

    We're getting some money back. Be happy with that since the company went belly up.

    February 6, 2012 09:49 pm at 9:49 pm |
  8. James

    It is appalling how CNN is in the bag for Obama. First, the headline is incredibly misleading. With the high profile Solyndra debacle, one would think by just reading the headline and not the article that the government is getting money back from Solyndra.
    To characterize the repayment as a 70% return is borderline criminal. It is a return of 70% of the money, not a 70% return on the money as the article suggests.

    February 6, 2012 10:35 pm at 10:35 pm |
  9. Four and The Door

    $0.70 on the dollar? Obama is improving by leaps and bounds! Think of all of those $30,000/ year ( with a duration of 6 months ) jobs he got America for just $2 million each. At $0.70 back per dollar, our tax dollars are going an order of magnitude farther than he has ever taken them before. ( Emphasis on taken... )

    February 6, 2012 11:37 pm at 11:37 pm |
  10. J.V.Hodgson

    I think Mr Bain Capital himself Romney is well aware of the risks of " venture capital" it offers huge gains but also has a high risk of losses. So we know this Beacon is 30 % loss= $13m peanuts.
    The outstanding question is Solyndra bankruptcy since the loan was larger... 30% 50% who knows yet. I just want the real data, and am not interested in trying to blame OBama directly or indirectly for Solnydra,
    Its a side show to the real matter of alternative energy viability and its global warming impacts.

    February 7, 2012 02:05 am at 2:05 am |