House panel looks at Solyndra loan restructuring
Washington — The Obama administration's decision to restructure a half-billion dollar loan to a failing solar energy company is back in the spotlight as a House panel resumes hearings on solar panel maker Solyndra.
Newly released emails show that the Treasury Department was concerned that the loan restructuring, approved earlier this year, could violate federal law. The deal was structured so that private investors moved ahead of taxpayers for repayment on part of the loan in case of a default by Solyndra.
Administration officials have defended the loan restructuring, saying that without an infusion of cash earlier this year, Solyndra would likely have faced immediate bankruptcy, putting more than 1,000 people out of work.
Even with the federal help, Solyndra closed its doors Aug. 31 and laid off all it workers.