Solyndra Solar Term Paper Example | Topics and Well Written Essays - 1250 words

Solyndra solar - Term Paper ExampleMeanwhile, the program intends to create over 60,000 jobs for the citizens and remains the evidentiary source of jobs for thousands of people. Despite the current bankruptcy, the program is facing, the administration claims that its investment portfolio is still effective and productive. Meanwhile, the Solyndra issues post criticism about the suitability of government in the offset of funding technologies and programs. Thus, the paper will evaluate the bankruptcy issues, bailout and analysis of the Solyndra Solar in instal to establish its performance in the market. Solyndra Solar Bailout The research indicates that the Solyndra has use a lot of billion dollars ineffectively collectable to the poor management and $535 zillion are direct bailout from the United State taxpayers (Cappiello, 2011). The program was handed $535 million dollars as a national loan guarantee despite its unstable financial footing. Solyndra has applied for the federal trade regulation support in order to assist foot the bill for the 1,100 employees that it laid off as a result of bankruptcy. Meanwhile, the administration program is supposed to use $1.5 billion to bailout the retraining for employees who had confused their jobs due to the foreign trade like competition from the cheap panels from china. ... The bailout had a lot of risk disclosure, but the company was operating at a lofty cash burn rate because it could not mange its expenses effectively. Meanwhile, the company had sales of $100 million in 2010 and as a result of high costs and knock it recorded a loss of $172 million that year (Cappiello, 2011). The company had lost about half a billion dollars for three sears before it comes for the bailout money from the federal programs. The federal government gave the money to the Solyndra without evaluating the financial crisis that was affecting the company. The company was producing tubes at cost of $4 per watt output, but it made losses on them because it was charging $3.24 in the market. Meanwhile, the company spent tens of millions of the bailout money in establishing a 500 million megawatt production capacity given that its production volumes had reduced to 65 megawatts (Cappiello, 2011). The company was judge to use the bailout money to sort the sales problems, but it spent its cash to build costly production firm. Meanwhile, the Kaiser Foundation bailout the Solyndra with a total of $ 75 million that would assist the companys situation, but the company would be paid before taxpayers get their $535 million back (Cappiello, 2011). The paying the taxpayers should follow the order of creditors due to the bankruptcy proceeding of the company. Meanwhile, the bailout assisted the company because it was almost certain to fail in case it was not bailout because the refinancing plan was rejected by the federal program. Solyndra Solar Bankruptcy The company faced various difficulties that led the company to close opera tions that will affect the