Energy Secretary Admits Government Loan Went To Solyndra AFTER Company defaulted
Energy Secretary Steven Chu has admitted that Federal funds were given to troubled green energy solar panel company Solyndra after the company had already defaulted on it's government loan.
Chu admitted Thursday to signing off on a restructuring plan to allow Solyndra to continue to receive Federal funding, even though it had already defaulted on a 535 million dollar loan. Solyndra has become the "poster child" for the green energy opponents who claim such companies cannot make it in the US without government subsidies because the energy is too expensive. Solyndra defaulted on the first payments it was due to the Feds on December 1 2010. Chu approved a softening of the loan requirements to the company could continue to receive Federal Funding. The criminal investigation being launched by the government centers around whether Solyndra officials misrepresented the financial health of the company in order to secure Federal funds.