Strike Two: Another Obama-Funded Alternative Energy Project Fails
Apparently $98.5 million dollars from the Federal Government wasn't enough to get Nevada Geothermal Power's solar-panel company off the ground. Just like Solyndra (which received $535 million dollars from taxpayers), the alternative energy company looks like it's going to fail.
“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.
“Consequently, material uncertainties exist which cast significant doubt upon the company’s ability to continue as a going concern,” the statement said.
Nevada Geothermal Power sought the government loan to shore up their finances - which critics say were already faltering before hand.
Rep. Jim Jordan, Ohio Republican and chairman of the House Oversight and Government Reform subcommittee on regulatory affairs, stimulus oversight and government spending, is concerned about NGP’s finances and the timing of the loan guarantee.
“The company was in danger of defaulting on its financial obligation, and the [Department of Energy‘s] assistance served as a de facto bailout,” Mr. Jordan said. “After receiving a taxpayer-backed $98.5 million loan guarantee, the company is still struggling.”
He said the loan guarantee “essentially served to prop up an already-faltering firm.
A barometer on the companies health could come as early as July 24th; That's the date of NGP's annual shareholder meeting.