Solyndra Execs to Testify Before House - NBC Bay Area

Solyndra Execs to Testify Before House



    Solyndra Execs to Testify Before House
    Garvin Thomas
    Solyndra employees await the president's arrival during much happier times.

    NBC Bay Area has learned while some FBI agents raided Fremont's Solyndra last Friday, others descended on homes belonging to Solyndra executives.  The Bureau has been tight lipped about the investigation, saying only the raid was at the request of the Department of Energy.

    At least two Solyndra executives, CEO Brian Harrison and Senior Vice President WG Stover Jr. are expected to testify Wednesday before the House Energy and Commerce subcommittee on investigations.

    Solyndra took more than $470 million of a guaranteed $535 million in low cost government loans.   A memo released by the House committee shows Harrison travelled to Washington on July 18 to meet with committee members to ask that the government loan be restructured to give Solyndra more breathing room and claimed that Solyndra's financial picture was improving. 

    However, the Department of Energy's Loan Programs Office says at nearly the same time the company planned to restate its financial filings to reflect falling revenue. 

    Obama Speaks at Solyndra

    [BAY] Obama Speaks at Solyndra
    President Barack Obama praised the Solyndra solar cell facility and workers during a visit to the Fremont plant.
    (Published Wednesday, May 26, 2010)

    The memo says when Solyndra's board learned of the falling revenue, Solyndra's private investors said they would not lend the ailing company $75 million more.  

    Failure to raise the extra $75 million led the Department of Energy's loan program office to determine "that a second restructuring was not feasible" and informed the company no more money would be available on August 30.  The company declared bankruptcy the next day.