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Solar Energy Firm Solyndra Shuts Shop

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In one of the most recent developments in the energy sector of the United States, the Solar firm which acted as a showcase for the current Obama administration’s efforts in creating employment opportunities in the clean energy technology has shut its doors yesterday, leaving around 1100 people jobless and obligating the taxpayers for the federal loans amounting up to $535 million.

The Fremont California based solar panel manufacturer, Solyndra LLC which enjoyed partial funding from Tulsan George Kaiser, one of the richest businessman and a philanthropist in United States, announced its decision on Thursday after earlier declaring bankruptcy. Solyndra LLC was one of the favorites for the Obama administration, especially with President Barack Obama and Steven Chu, the Energy Secretary making congratulatory visits to Solyndra’s headquarters over the past two years.

The sudden announcement on Wednesday regarding the shutdown came as a surprise to many. Earlier, the House of Republicans and even the government auditors had raised questions regarding the administration’s decision to provide loan guarantees to the company which was partially backed by capital originating from a group controlled by George Kaiser. Kaiser. The billionaire is also a democratic fundraiser.


According to the reports from CNN Money, the George Kaiser Family Foundation was the largest investor in Solyndra LLC which had raised about $ 1 billion through private equity financing.

More than 35 percent equity stake was held by George Kaiser Family Foundation in Solyndra when it had filed for a $ 300 million Initial Public Offering in 2009 which was later cancelled, reported CNN Money. Other than the Foundation, other investors included U.S. Venture Partners with a 10.19 percent stake and a venture capital firm Madrone Partners affiliated to Walton Family of Wal-Mart Stores Inc. (NYSE:WMT) with a stake of about 11 percent according to CNN Money.

The company officials said that they are going to seize the company operations and seek the Chapter 11 bankruptcy protection allowing the company to gain some time to evaluate its further options which may include the sale of the company or licensing the technologies to other companies.

Brian Harrison, the Chief Executive Officer of Solyndra in a statement said that this was a completely unexpected outcome and is most unfortunate. He also said that the company was unable to raise the required capital on time to save its operations due to the regulatory and policy uncertainties. According to the officials from the energy department, the cheap solar panels manufactured in China had undercut Solyndra.

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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.


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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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