Solar Company Asks For Bailout And Bankruptcy Protection
We have been hearing for weeks about the financial trouble Solyndra Inc. has been facing. As a leading American manufacturer of solar technology, the company has been troubled from the beginning. Between the high costs for product production and unmatched competition from Chinese manufacturing, Solyndra and many similar companies have been fighting to stay in operation. As the pressure mounts, the company has been grabbing at straws to save themselves. Many are now asking, where do we draw the line?
Crossing The Line?
Solyndra has filed for bankruptcy protection after having already received a $535 million federal loan bailout. In addition, they have also applied for federal Trade Adjustment Assistance to help pay for expenses related to over one thousand employee layoffs.
As the recipient of a first-ever bail-out of a green initiatives company, Solyndra is in a unique position to uphold the idea that there is a need for such industries. The Obama Administration has helped push the green initiative and gave companies like Solyndra the chance to prove themselves in the market. Now that the company continues to ask for more, many are left feeling like Solyndra’s actions are an abuse of federal taxpayer money.
The jury is still out about the fate of Solyndra and whether the taxpayers will allow the government to shell out any more money from their already tight wallets; but one thing is clear, the government simply cannot afford to offer financial help to anyone. Corporations will need to better calculate their ability to maintain profitability under future market conditions before acquiring a debt burden they cannot manage.