by Katy Grimes, E&E Legal Senior Media Fellow and California Globe Editor
As Appearing in the California Globe
Too many government subsidies and not enough free market investment?
The Washington Post recently reported that California-based Proterra, the electric bus company filed for bankruptcy last week. This is like a flashback to Solyndra, a solar panel start-up and recipient federal funds from the 2009 American Recovery and Reinvestment Act (ARRA). Solyndra blew $570 million taxpayer dollars before it folded.
“Solar panel start-up Solyndra was the first company to get government-backed loans from ARRA after its passage, collecting $535 million and receiving a $25 million tax break from California’s agency for alternative energy,” Forbes reported.
From a review of documents via a well placed source, the Globe has learned:
California-based Proterra has voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware. Chapter 11 is a business reorganization.
Henrik Alex, a trader, expected Proterra’s default sooner than August: “While I expected the company to default on its convertible debt back in March already, Proterra actually managed to amend covenants and extend the maturity date of the notes shortly after my article was published.”
