Another Solar Company bites the dust - Guess Who loaned them Money !

Story from Politico (long 3-page article)
6/4/12

Konarka could undercut attacks on Solyndra
Konarka Technologies got a $1.5 million loan from .............

Mitt Romney when he was Governor of Massachusetts !!

Sounds like big news.

The loan was granted in 2003.

The company filed for bankruptcy recently, and more than likely paid the loan off.
(the article isn't clear on that as far as I could see)

My guess is the company ran amuck because of more recent business conditions that could be part of Obama's unsolved problems with foreign competition in the green markets.


The spin from Obama supporters ?

A Massachusetts solar company to which Mitt Romney personally delivered a $1.5 million loan when he was governor has gone belly up, leaving him vulnerable to the same “picking winners and losers” charges that he’s been lobbing at President Barack Obama over Solyndra.

The president’s reelection campaign wasted no time noting Romney’s support for Lowell-based Konarka Technologies, which announced Friday it had filed for bankruptcy protection with plans to lay off more than 80 workers and liquidate its assets.

$1.5 million vs. $535 million ?

The filing came on the heels of Romney’s unannounced visit last week to Solyndra’s Silicon Valley headquarters, where he accused the Obama administration of a conflict of interest and poor judgment in approving Solyndra’s $535 million Energy Department loan guarantee.

In January 2003, just less than three weeks into his term as governor, Romney handed a check to Konarka executives during a news conference that also involved giving out subsidies to four other renewable-energy companies. One of the other winners announced that day — Evergreen Solar — has already undercut Romney’s Solyndra attacks by filing last year for bankruptcy protection.

grasping ?

“Every day, we see a new example of Mitt Romney’s hypocrisy,” Obama campaign spokeswoman Lis Smith said Saturday. “Just one day after he pulled a political stunt outside Solyndra, we learned even more about his record of picking winners and losers in Massachusetts when one of the companies he gave a loan to went bankrupt.”

big differences ?

Konarka, in the meantime, went on to raise $170 million in private capital as it amassed more than 100 patents for a variety of solar products, including thin, flexible panels that its customers then build into bags and umbrellas. It also raised $5 million more in state loans under Democratic Gov. Deval Patrick’s administration.

“President Obama has a lot of questions to answer about why he used taxpayer dollars to reward wealthy campaign donors for bad ideas like Solyndra, yet he is unwilling to focus on creating jobs for the millions of Americans who are struggling,” Romney spokeswoman Andrea Saul said. “His distortions and distractions will not put a single American back to work.”

finally on page 3, we see some differences

But Lawrence Gasman, a principal analyst at the research firm NanoMarkets, said Konarka’s financial collapse doesn’t fall in the same category as Solyndra’s. Differences between the two companies are significant, from the ongoing FBI investigation into Solyndra to the sheer size of their arrangements.

“Somehow, it doesn’t seem like a very good argument to counter a loss of $530 million by pointing out that the man who is accusing you once lost $1.5 million in vaguely but not all that similar circumstances,” he said.

Political contribution$

Republicans note that Solyndra has plenty of ties to Obama’s campaign. One of the company’s largest private investors is a family foundation run by George Kaiser, a Tulsa oilman and Obama bundler. Steve Spinner, an Obama fundraiser in 2008 and again in 2012, monitored the Solyndra loan guarantee while working as an Energy Department adviser.

As for Konarka, a POLITICO review of state and federal donation records turned up no contributions between top company officials and Romney — either for his 2002 gubernatorial or his 2008 and 2012 presidential bids.

Berke has given to members of both political parties — $2,300 to John McCain’s 2008 White House campaign and $1,000 to GOP Sen. Scott Brown, as well as $1,000 to Democratic Rep. Niki Tsongas and $500 to Elizabeth Esty, a House Democratic congressional candidate from Connecticut. But he has not donated to Romney.

Heeger, the company’s chief scientist, has given $900 to Obama, according to donation data compiled by the Center for Responsive Politics.

Weak Arguments ??

or "Warning Signs" ?

Probably wouldn't have bitten the dust if the oil and coal companies weren't getting government handouts via subsidies and unwarranted tax credits. Nevermind the oligopoly they represent - they have created a market that is anything but free, or even relatively honest. The game is rigged, and big oil/gas/coal owns the game.

reply to post by xuenchen


Lots of businesses fail - it's just that lately the media seems to be attacking solar. I wonder who has a vested interest in destroying solar before it even gets off the ground..?

This is a political article more than an intelligent analysis of the solar industry, and what the many contributing factors to it's current poor performance are. China basically flooded the market with cheap solar in 2011 and the price dropped by about 40%. Solar stocks plummeted. The US cannot compete with cheap Chinese labor and this was maybe predictable but I think it's wrong to attempt to place the blame on US politicians. Rather, I think they should be commended for doing what they can to help build a more robust and diverse energy infrastructure.

The recent tariffs against Chinese solar are an attempt to put US solar companies on an even playing field and to keep these high tech jobs in the US. Should we really attack either Obama or Romney for this?

Fully relying on coal, oil, and nuclear is a recipe for future disaster.


Disclaimer: I am not a fan of either Romney or Obama.

The company Romney loaned the money to lasted 9 years.
Romney was out of office before Konarka Technologies bit the dust and we don't know why the company had problem it could be the same problems many companies have environmental rules and regs that are out of hand. plus undercutting by china and and the cutting of rare earths exports by china that the democrats have don't nothing about
And the FACT that the democrats are anti mining and caused the closing of the only rare earth mine in the US

And Solyndra lasted what 3 years if that

Romney wins in my book.

The democrats are schizophrenic on one hand they want solar and wind power but they turn around a make it imposable for companies to make the equipment in the US and block the building of solar and wind projects when ever possible.

doesnt that indicate the Demorats too are controlled by the big oil/coa;/gas corps??
All the politicians seem to represent the corporations anymore.....
We need a man like................waaait for it///////
R Paul.

Am I the only one hoping for a midair collision between their two jets? Yeah it's not nice, I can't help it. Every day I try my best to not hate our "leaders", to try to understand why they are so corrupt, stupid and evil. It's not easy.

hey im not in the states and good on the chinese for reducing solar prices,your charging to much its quite simple we are not going to pay for over priced stuff from the states ,reduce your prices or me and a few million others will buy it from china at a fair price,you know we can print solar panels now ,seriously america your overcharging,but now i can import direct from china via ebay or alibaba ,so i can buy nearly everything you sell at half price hahahahahahahaha serves you right for ripping us off so long,,
solar prices are still twice as much as they should be ,but the chinese are more like heroes to the people providing cheap stuff while america is the beast extorting as much out the people as it can

Originally posted by stuthealien
hey im not in the states and good on the chinese for reducing solar prices,your charging to much its quite simple we are not going to pay for over priced stuff from the states ,reduce your prices or me and a few million others will buy it from china at a fair price,you know we can print solar panels now ,seriously america your overcharging,but now i can import direct from china via ebay or alibaba ,so i can buy nearly everything you sell at half price hahahahahahahaha serves you right for ripping us off so long,,
solar prices are still twice as much as they should be ,but the chinese are more like heroes to the people providing cheap stuff while america is the beast extorting as much out the people as it can

You have no understanding of labor and economy. The US cannot compete with Chinese labor, which is basically slave labor. When you buy Chinese solar, or anything else from China, you are supporting slave wages and slave conditions.

The US' solar companies aren't trying to rip you off. They are trying to make a quality product as cheaply as possible in the US labor market. Prices have already dropped to meet the prices of Chinese solar - which is why many US solar companies have gone out of business.

So go ahead and support slave labor - Soon China will have it's own worker's revolution and there will be no more cheap Chinese products. At that point labor will probably be exported to a third world country and China's economic bubble will burst just like everyone else's has.

The tariffs on Chinese Solar will bring Chinese manufacturing to the US to get around the duties. Your little scenario is proof that you have very little knowledge of what's happening in the solar industry and that you have an obvious bias against the US. Instead of speaking with your feelings, you should learn the facts and speak with your brain.

Out.

dude even a child knows how econmies work so whats that you outpriced yourselfs because you wanted a minimum wage,not my fault blame your goverment for putting interest and tax up if they hadnt you wouldnt of needed more wages per hour,and on the otherhand if these third world countries get the manufacturing because of the reduced labour costs in there country of origin they then become devoloping countries and come out of starvation and poverty and then the world really is a better place,and will still get cheap electronics just instead of china maybe somalia

Originally posted by xuenchen

The company filed for bankruptcy recently, and more than likely paid the loan off.
(the article isn't clear on that as far as I could see)

$1.5 million vs. $535 million ?

We won't know anything for sure until the senate appoints a special investigator and begins full hearings...like they did for Solyandra....at a taxpayer cost of around 40 million thus far.....

Are you ready for the difference?

This is Romney's JOB!!!!! That's what venture capitalists do.... They give companies they like startup loans. Mitt Romney was being an angel investor for the solar company, while Obama on the other hand as President of the US. Gave money to an already bankrupt company that was in the red for years. And they knew about it!!!!!

in business sometimes you lose....I'm sorry that Mitt Romney does not have a perfect business record, well does anyone? Steve Jobs nearly threw Apple under the bus with his "pirates" but nobody gave him crap about that. "Oh look more shiny iphones made by Chinese factory workers!!"

The reason some of those solar companies go bankrupt is because investing in solar requires loans, compared to simply paying for oil. Given the current economic situation it's VERY hard to secure loans...so they lose customers.

In short: They aren't failing because solar sucks, they fail because of the economy and because the oil industry (their largest competitor) receives the large bulk of subsidies (making it VERY heard to compete when it comes to energy prices).

Originally posted by jjf3rd77
Are you ready for the difference?

This is Romney's JOB!!!!! That's what venture capitalists do.... They give companies they like startup loans. Mitt Romney was being an angel investor for the solar company, while Obama....

Are you ready for reality???....Romney gave them TAXPAYER MONEY as Govenor of Mass. not via Bain Capital

Konarka was among the startups that in 2003 were allotted some $24 million in loans from the Massachusetts renewable energy trust fund, according to The Boston Globe.

At a January 2003 news conference at the company’s Lowell headquarters, Romney argued that the loans would serve as “a major economic springboard for the Commonwealth by focusing on job creation in the renewable energy sector,” The Globe reported.

www.washingtonpost.com...

This is also interesting...

As per the year 2006, the company managed to obtain 60 million dollars as financial assistance from the venture capital organizations such as Draper Fisher Jurvetson, Chevron Technology Ventures, New Enterprise Associates and others. The company managed to obtain approximately 10 million dollars as mutual assistance by the European and Pentagon administration. During the year 2007, Konarka was authorized for the additional financial assistance by the means of Solar America Initiative, an element of the Advanced Energy Initiative of the White House

AND OTHERS?...Were one of those "others" Bain Capital??? Was Romney giving them taxpayer money from one hand while pulling fees from them in the other at Bain?

I also want to know who under the Bush administration lobbied for and authorized the loans via the White House Advanced energy Initiative in 2007

Originally posted by Indigo5
Are you ready for reality???....Romney gave them TAXPAYER MONEY as Govenor of Mass. not via Bain Capital

The company was a startup, not a failing company. It also went bankrupt under a democrat governor, 9 years later, not under Romney.

One is a worthwhile gamble, one is paying back your buddies who contributed to your campaign with tax dollars, you figure out which is which.

Originally posted by OccamsRazor04

Originally posted by Indigo5
Are you ready for reality???....Romney gave them TAXPAYER MONEY as Govenor of Mass. not via Bain Capital

The company was a startup, not a failing company. It also went bankrupt under a democrat governor, 9 years later, not under Romney.

One is a worthwhile gamble, one is paying back your buddies who contributed to your campaign with tax dollars, you figure out which is which.

They both failed for the same reason

Here is the number one reason that US companies can not compete.
www.abovetopsecret.com...

If china had to follow the same environmental rules companies in the US do it would be a level playing field.

reply to post by MrXYZ


One failed before the loan, one was a startup. Not sure what you contributed to my reply as you did not addess any point I made.

Originally posted by OccamsRazor04
reply to post by MrXYZ

 

One failed before the loan, one was a startup. Not sure what you contributed to my reply as you did not addess any point I made.

They both failed for the very same reasons, and both loans had nothing to do with their failure. They failed because the economic environment made it almost impossible for them to compete...solar needs an easy availability of loans (which isn't possible during economic downturns) and a free market (which doesn't exist because oil gets the bulk of the subsidies making sure they can undercut solar energy). Those were the reasons why those companies crashed, so it matters NOTHING whether or not one was a startup while the other wasn't

Common (economic) sense

Originally posted by ANNED
Here is the number one reason that US companies can not compete.
www.abovetopsecret.com...

If china had to follow the same environmental rules companies in the US do it would be a level playing field.

Having been in China, I can only say "THANK YOU EPA!!!". You wouldn't believe the pollution I saw in China, it was scary...