DOE Admits Funding Solyndra Despite Shortages

Law360, New York (September 29, 2011, 6:54 PM EDT) -- The U.S. Department of Energy acknowledged Thursday that it kept taxpayer money flowing to now-bankrupt solar panel maker Solyndra Inc. by tweaking the terms of a $535 million government stimulus loan to prevent the company from defaulting.

Solyndra was unable to set aside $5 million in a reserve fund in December to stay in compliance with the terms of its government loan, so the Energy Department restructured the agreement, department spokesman Damien LaVera said.

“Ultimately, the choice was between imminent liquidation or giving the company and its workers a...
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