Oversight Leaders Statements on DOE Announcement of Abound Solar Bankruptcy and Loss of $70 Million in Taxpayer Loan Funds

Published: Jun 28, 2012

Oversight and Government Reform Committee Chairman Darrell Issa (R-CA) and Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending Chairman Jim Jordan (R-OH) today released the following statements regarding a Department of Energy announcement that Abound Solar, Inc.,  would close and declare bankruptcy.  They received $70 million in public funds on a loan guarantee of $400 million approved by the Obama Administration.  This is the third firm that received a loan or guarantee from the Obama Administration to declare bankruptcy.

Chairman Jordan said, “This just underscores how ridiculous this program is. Our government is not good at picking winners and losers in the marketplace but has certainly proved it is good at wasting taxpayer dollars. The Committee noted that this level of risk is unacceptable for taxpayers.”

“As part of its examination of President Obama’s failed green energy agenda and botched loan program, the Oversight Committee spotlighted in January the very real risks to taxpayers from Abound’s weak balance sheet.  Abound received a junk credit rating of B, below that of the failed Solyndra,” Chairman Issa said. 

Chairman Issa added, “Today, that risk has become a reality, demonstrating yet again that taxpayers pay the price when the Obama Administration makes politically-motivated decisions as part of its failed green energy agenda.”