California-based Solyndra filed for Chapter 11 bankruptcy protection, closed its plant, and laid off all 1,100 workers, despite receiving a $535 million federal loan in 2009. While the company said high production costs rendered it unable to compete with Chinese manufacturers such as Solarfun, Suntech, Trina Solar, and Yingli, critics wonder if the government was too quick to guarantee a loan without proper due diligence. Solyndra is now the target of a criminal investigation into whether its executives knowingly misled the government in order to receive the loan.
The spectacular failure of solar panel manufacturer Solyndra earlier this month seems to have everyone worried about the US Department of Energy’s loan program.
2011-09-22T13:00:00Solyndra bankruptcy puts other federal loan recipients under scrutiny glassonweb.com