Posts Tagged ‘CO’

Commentary: Is Former Clinton Cabinet Member a ‘Venture Capital Vampire’ Like Mitt Romney?

Friday, May 25th, 2012

By Todd Shepherd |

Todd Shepherd

Former Denver mayor and Obama national campaign co-chair Federico Peña has a resume surprisingly similar to Mitt Romney’s.

President Obama continues to hammer presumptive Republican nominee Mitt Romney on his record with Bain Capital. In a fundraiser on Wednesday in Denver, the president continued to push the “Venture Capital Vampire” theme saying, “What Gov. Romney doesn’t seem to get is that a healthy economy doesn’t just mean a few folks maximizing their profits through massive layoffs or busting unions.”

We wonder if former Denver mayor and Clinton Transportation and Energy Secretary Federico Peña happened to be in the audience, and if he agreed.

Peña has been a partner at venture capital firm Vestar Capital since 2000. And while President Obama has been giving private equity a bad name, both Peña and Vestar managing director James Kelley have made recent contributions to Obama’s re-election efforts. (more…)

Follow-Up: DOE Releases Abound Solar Loan Documents

Tuesday, April 10th, 2012

By Todd Shepherd | Complete Colorado

DENVER — In response to a Freedom of Information Act request, the Department of Energy (DOE) has released numerous documents relating to the $400-million in DOE guaranteed loans to Abound Solar.

Previous reports said the DOE and Abound were declining to release the documents because of “proprietary reasons.”  However, many redactions have still been made to the documents in conjunction with their release, and again, the principal reason for those redactions is FOIA exemption b(4) – “trade secrets and commercial or financial information obtained from a person [that is] privileged or confidential.”

Abound Solar was originally touted by President Obama as a “green” jobs creator, but in February, the company laid off more than 200 workers. The company says they are currently retooling their manufacturing plants to create a newer, more competitive solar module. However, the company has drawn criticism because, like the recently-failed Solyndra, the DOE loan to Abound appears to have been made without regard to various credit ratings. The company has also received criticism over the political connectionsbetween Abound and the White House, primarily from Colorado Democrat donor Pat Stryker.


Abound Solar had previously unannounced production shutdown, worried about ‘rumor mill’

Wednesday, March 7th, 2012

By Todd Shepherd | Complete Colorado

LOVELAND — Documents obtained by show that Abound Solar created an unexpected, and previously unreported 10 day production shutdown over the Christmas and New Year’s holidays, and then went on to tell employees, “Don’t let the rumor mill create false purposes for this shutdown.” The shutdown was announced to employees just after Thanksgiving by company president Craig Witsoe.

Another document outlines the 2012 goals for “The Next Great Solar Company” and specifically states that where cash management is concerned, the company should “stretch payables,” meaning Abound would be attempting to pay their bills at the last possible moment, or perhaps would be agreeing to repay vendors through smaller installment payments that include interest or small penalties. One inference that could be drawn from the “stretch payables” strategy would be that the company is not cash heavy and/or that cash flows are poor.

In a December 2nd email from Heather Gabaldon giving directions for the shutdown, employees were told,

Don’t let the rumor mill create false purposes for this shut down. Holiday shut downs in businesses are common and represent best of class employer actions. We are shutting down to better manage the inventory, cost and to help employees have time with their families. Any other story is a rumor and not helpful in our building open and effective communications.

Abound Solar holiday shutdown

On February 28, the company announced layoffs to 180 full-time workers, and 100 part-time employees, in a move that now even has industry analysts wondering aloud at the future of the company.

ABC News recently reported that just prior to the February announcement of the long-term layoffs:

The House Committee on Oversight and Government Reform asked Energy Secretary Steven Chu to explain how the solar panel manufacturer had qualified for the loan after the ratings firm Fitch had determined the company would make a “highly speculative” investment.

In September of 2010, was first to report the connections between Obama-bundler and Colorado ‘Gang-of-Four‘ member Pat Stryker, and Abound Solar. Continue reading.