Another green tech borrower with a 'going concern' problem

NY Times:
In a remote desert spot in northern Nevada, there is a geothermal plant run by a politically connected clean energy start-up that has relied heavily on an Obama administration loan guarantee and is now facing financial turmoil.
The company is Nevada Geothermal Power, which like Solyndra, the now-famous California solar company, is struggling with debt after encountering problems at its only operating plant.
 After a series of technical missteps that are draining Nevada Geothermal’s cash reserves, its own auditor concluded in a filing released last week that there was “significant doubt about the company’s ability to continue as a going concern.”
 It is a description that echoes the warning issued in 2010 by auditors hired by Solyndra, which benefited from the same Energy Department loan guarantee before its collapsein August caused the Obama administration great embarrassment.
...
OK, who is doing the cash flow analysis on these loans?  What were the revenue assumptions that led them to believe that these entities would be able to payback the huge loans they were getting?  Are green tech companies the new subprime borrowers?


I suspect that Chu and Obama are in over their heads when it comes to finance.  There is probably a good reason these companies could not get commercial finance loans.
 
 

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