Fisker Misses $10 Million Payment to DOE as Feds Seize Reserve Account
April 23, 2013 9:49 AM
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Fisker woes deepen
Things aren't going well for electric automaker Fisker. The company was expected to
file for bankruptcy protection this month
forced to lay off 75% of its workforce
. The unexpected slashing of its workforce led to a suit by former employees. Today we learned that Fisker has failed to make its first $10 million payment to the Energy Department to repay the massive federal loan it was given.
A spokesperson from the Energy Department named Aoife McCarthy said that the federal government earlier this month recouped $21 million of the $192 million it loaned Fisker.
"Given the obvious difficulties the company is facing, we are taking strong and appropriate action on behalf of taxpayers," McCarthy said.
"Using the safeguards we write into our loan agreements, the department stopped disbursing on the loan in June 2011 after the company, taking a significant chunk of taxpayer money with it short of the aggressive milestones that we had established as a condition of the loan," she said. "As a result, while our original loan commitment was for $529 million, only $192 million was actually disbursed."
Fisker’s current and former CEOs are set to testify at House hearing this week about the struggles with the automotive manufacturer. Along with the automotive executives from Fisker, Energy Department supervisory senior investment officer for loans program office, Nicholas Whitcombe, will also be testifying.
The Obama administration approved Fisker for the $529 million federal loan in 2010. The automaker produced only 2,500 of its plug-in hybrid sedans at an
estimated cost of $660,000 each
when federal and private funds are considered.
Wall Street Journal
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RE: Crony Capitalism
4/24/2013 11:04:25 AM
There's nothing racist or tea baggy about the list, so you'd have be an utter moron to go that route. This is not to suggest that Democrats are morons (which would be the next predictable response). Irrespective of opinion, the facts are that ALL governments "play venture capitalist".
Subsidies, tax breaks, low interest loans, bailouts and grants (for commercial projects) exist in all industries and not just clean energy. Look at what the Corn lobby has achieved over the past decade. Clean energy was just seized upon by a particular party with particular interests when it served a political purpose despite being utterly dwarfed by other industries.
It still stinks obviously. All of them do...
“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
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