"You also have to return the loan with any profit you make. You cannot choose not to pay back a loan!"
Actually, the taxpayers just paid off $539M of their own loan to Ivanpah. Taxpayers lent the money and taxpayers paid. "Now, Ivanpah is asking <http://online.wsj.com/articles/ivanpah-solar-project-owners-delay-repaying-loans-documents-say-1411488730> for $539 million in cash from the federal government. This time, Ivanpah is targeting a Department of Treasury tax credit program that reimburses renewable energy projects for up to 30 percent of project costs. Ivanpah would use the proceeds to pay off a large portion of its $1.6 billion loan. The company is asking the federal government to provide it with an enormous amount of cash to be used to payoff its debt to taxpayers. DOE actually requires Ivanpah to apply for a tax credit to aid loan repayment. The process is absurd. First, the government uses tax dollars to provide a loan guarantee to a risky firm. Then, it functionally forgives a large share of the outstanding balance after providing a large tax credit. This is an unjustified giveaway to investors in Ivanpah and a horrible deal for taxpayers." IPO funds are capital, not profit. The loan gets paid back based upon terms of the loan, not profits. Lots of loans never get paid back if contracts default or are lost and companies run out of operating capital and go bankrupt. On Fri, Jan 1, 2016 at 10:23 AM, Jed Rothwell <jedrothw...@gmail.com <javascript:_e(%7B%7D,'cvml','jedrothw...@gmail.com');>> wrote: > ChemE Stewart <cheme...@gmail.com > <javascript:_e(%7B%7D,'cvml','cheme...@gmail.com');>> wrote: > > >> The real play with Ivanpah was the IPO, which failed. That way the >> crooks would have had the taxpayers pay for it the first time and then >> investors buy it a second time while they suck the money out and bankrupt >> it. >> > > This makes no sense. If the investors first borrow money from the > government and then do an IPO, they have to return the loan with the IPO > money. You cannot keep both the loan and the IPO money. The taxpayers would > not "pay for it the first time." They don't "pay for" anything. They lend > you the money. You pay for it. > > You also have to return the loan with any profit you make. You cannot > choose not to pay back a loan! > > As long as the power company continues to buy electricity from this > installation, the taxpayers will get their money back eventually. > > - Jed > >
