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Thursday, July 05, 2012

Lights Go Dim on Another Energy Project

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.

“The 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.



Bullard Construction said...

Gee, wow, you mean solar and other alternative energy sources are not viable yet? Who knew!

Anonymous said...

I guess if a person becomes a campaign bundler for Obama,they become rich!I heard a couple into real estate from Va raised $100,000 for Obama then recieved a military contract worth $200,000,000!