Charlotte Bankruptcy Lawyer Bryan W. Stone of Arnold & Smith, PLLC answers the question “What is Chapter 7 Bankruptcy?”
Yet another solar energy company subsidized by American taxpayers during the effort to save the United States’ economy from ruin has declared bankruptcy.
United States Representative Marcy Kaptur, a Democrat who represents Ohio’s 9th congressional district, helped secure nearly $3 million in federal earmarks for the bankrupt company, Xunlight Corp. In 2010, the company received $34.5 million in tax credits as a part of the so-called federal “stimulus” bill.
The “stimulus” was passed in February 2009 in response to the onset of the Great Recession in order to save jobs and prevent further economic damage caused by the recession, which officially ended later that year. Since that time, the Obama Administration and numerous members of Congress have been criticized for securing billions of dollars in aid and tax credits for companies that subsequently when bankrupt.
A number of the bankruptcies involved solar-energy companies like Xunlight.
Taxpayers aren’t the only ones feeling stung by the latest solar-energy investment bust. In 2008, the University of Toledo Foundation invested $3 million in Xunlight. It ultimately had to forgive $1 million of Xunlight’s debt and received an ownership stake in one of the company’s manufacturing lines instead.