Solyndra Term Paper Kenneth Lingenfelter

It was in 2010 that solyndra when they would begin to

Info icon This preview shows pages 5–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Renewable Energy World Magazine. It was in 2010 that Solyndra when they would begin to face financial difficulties after raising $1 billion in venture capital and receiving money from the Department of Energy. It was evident that Solyndra’s system proved less expensive to install, but were more expensive to produce. The overall cost for Solyndra’s product was double the cost for competitive solar panel companies which would ultimately bring the company to cancel plans to add 1,000 jobs and replace Gronet (CEO) with Brian Harrison. Solyndra would increase its visibility in 2011 under the leadership of Harrison. His goal was to present trade shows and granting interviews to journalists with integration of expanding marketing sales. 5
Image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Solyndra qualified for the guaranteed government loan through the Energy Policy Act 2005, title XVII, section 1705. Under section 1705 the company must be based in the United States, must be renewable energy systems project, and must commence construction no later than 30 September 2011. Title XVII specifies that the Department of Energy must receive either an appropriation for the Credit Subsidy Cost; the expected long-term liability to the Federal Government in issuing the loan guarantee; or payment of that cost by the borrower. The Department appropriated funds to pay the Credit Subsidy Cost of Section 1705 projects. In some cases, 1703 eligible projects may also be eligible under 1705, thereby qualifying them for appropriated CSC. (Department of Energy, 2011) Even after receiving loans and securing investments from creditable shareholders Solyndra eventually filed chapter 11 bankruptcy in August 2011. The federal government was part of Solyndra largest creditors when filing the Chapter 11 Bankruptcy. In all the company had listed $859 million in assets and $784 million in secured loans. Under the newly approved plan their was and issue pertaining the amount considered for the tax break. The $341 million would be handled by Argonaut Private Equity and Madrone Capital Partners. The use for the Chapter 11 of the Bankruptcy code will provide a proceeding whereby, under the supervision of the Bankruptcy Court, the debtor’s financial affairs can be reorganized rather than liquidated. Along with filing for chapter 11 Bankruptcy, Solyndra was also dealing with disgruntle employees attempting to collect $3.5 million in compensation. The Worker Adjustment and Retraining Notification Act (WARN) of 1988 requires that covered firms provide affected employees with 60 days' advance notice of plant closings and large-scale layoffs. Under the federal Worker Adjustment and Retraining Notification Act 6
Image of page 6
(WARN) and the California Labor Code, employees of Solyndra filed suit claiming for 60 days in wages and benefits. On August 31, 2011 Solyndra conducted mass layoffs for employees without providing them with an official written notice for the actions of the corporation. The WARN Act requires that Solyndra is to provide their employees with 60 days written notice in advance of a mass layoff or plant closing. In the absence of such notice, employers may be liable to each affected employee for 60 days wages and benefits. Approximately 13 months later the
Image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern