"The Fremont, Calif., company, which had received a $535-million Energy Department loan guarantee and hosted a tour by President Obama, plans to seek bankruptcy protection."
"The California solar panel manufacturer that received a high-profile $535-million Energy Department loan guarantee said it was ceasing operations, laying of 1,100 workers and preparing to file for bankruptcy protection.
Solyndra of Fremont, Calif., said it had been rocked by stifling global economic conditions and faced heavy competition from Chinese firms that were undercutting it on costs.
It was quite a fall from late 2009, when Solyndra received a $535-million federal loan guarantee as part of the $787-billion economic stimulus package. In May 2010, company executives hosted President Obama on a factory tour and said they expected to add employees.
But in July of this year, management was grilled on Capitol Hill by House Republicans, who said that there were indications that the company was in weak financial condition and wasn't a good choice for the loan program."
Ronald D. White reports for the Los Angeles Times September 1, 2011.
SEE ALSO:
"Solar Firm Aided by Federal Loans Shuts Doors" (New York Times)
