Restructure of a half-billion dollar loan
In the spotlight as House panel resumes hearings on solar panel maker Solyndra, the Obama administration’s decision to restructure a half-billion dollar loan to a failing solar energy company is back. The Treasury Department approved earlier this year was concerned that the loan restructuring could violate federal law. Without infusion of cash earlier this year, Solyndra would likely have faced immediate bankruptcy, Administration officials have defended the loan restructuring said. It will be putting more than 1,000 people out of work.
Solyndra closed its doors Aug. 31 and let all of its workers go even with the federal help. When it agreed to restructure Solyndra’s debt in February, at the hearing Friday will focus on whether the Energy Department broke the law, Leaders of the House Energy and Commerce Committee said. The deal can violate the law because it put investors’ interests ahead of taxpayers, an assistant treasury secretary Mary Miller said as he lawmakers cite emails showing.
A top White House budget official that she had advised that any proposed restructuring be reviewed by the Justice Department before it was approved, Mary Miller said. Emails released last week show a wide disagreement among officials at Treasury and Office of Management and Budget and the Energy Department, about Solyndra.