A geothermal energy company with a $98.5 million loan guarantee from the Obama administration for an alternative energy project in Nevada - which received hearty endorsements from Energy Secretary Steven Chu and Senate Majority Leader Harry Reid - faces financial problems, and the company’s auditors have questioned whether it can stay in business.
Much like Solyndra LLC, a California solar-panel manufacturer with a $535 million federal loan guarantee that went bankrupt, Nevada Geothermal Power (NGP)
has incurred $98 million in net losses over the past several years, has
substantial debts and does not generate enough cash from its current
operations after debt-service costs, an internal audit said.
company’s ability to continue as a going concern is dependent on its
available cash and its ability to continue to raise funds to support
corporate operations and the development of other properties,” NGP auditors said in a financial statement for the period ending March 31.