Two months before the federal government provided a $535 million federal loan to the company, auditors found that Solyndra, the bankrupt solar company, had significant financial difficulties, Bloomberg reports.In a deepening scandal that threatens to ensnare members of the Obama administration, PricewaterhouseCoopers found that the company’s finances “raise substantial doubt about its ability to continue as a going concern.” Two months later the company was awarded the loan under a green jobs program.
Solyndra filed for Chapter 11 bankruptcy protection earlier this month — laying off 1,100 employees and leaving the federal government on the hook for the amount of the loan.
House Republicans have been investigating terms of the loan since earlier this year — and will hold a hearing on it on Wednesday. Republicans assert that the Obama administration fast-tracked the loan without following proper procedures.
Last week, ABC News reported that Obama administration officials sat in on the company’s board meetings in the months leading up to the bankruptcy filing. FBI agents raided the company’s headquarters last week in search of documents pertaining to Solyndra’s relationship with the Department of Energy.
Bloomberg reported that the administration rejected the company’s request to renegotiate the terms of the loan the day before the company went under.
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