Tech Group Agrees to Pay $90M for Solyndra Building That Cost $300M

[Mazeppa]

Upside Down: Tech Group Agrees to Pay $90M for Solyndra Building That Cost $300M

Posted on August 25, 2012 by Becket Adams


“Seagate Technology Plc, maker of hard drives and storage devices, has agreed to pay $90.3 million for the former manufacturing plant and headquarters building of bankrupt Solyndra LLC, which was financed by a controversial government loan, according to bankruptcy court documents,” Reuters reports.

So what’s the problem? At least the Solyndra building is one step closer to being sold, right?

Well, considering that the building originally cost $300 million, we’d say this is pretty depressing.

“Seagate’s offer will be considered an initial bid, or ‘stalking horse,’ which could be topped by a competing offer of at least $1 million more when an auction is held, according to court documents filed late Wednesday,” Reuters reports.

“Should a higher bid emerge, Seagate would be entitled to a breakup fee of $1.8 million, a little less than 2.6 percent of the technology company’s offer,” the report adds.

And Seagate wasn’t alone in its interest in the facility.

The Solyndra building “attracted interest from U.S., Chinese and European companies involved in industries such as solar energy, medical-related products, data centers and other technologies that need an ultra-clean manufacturing environment,” the report adds.

“The highest bid came from Seagate.”

Wait a minute. With more than just Seagate competing on the building, $90 million was the winning bid? Hot Air’s Ed Morrissey gives his take:

This was the best competitive price for the facility — only 30% of what the Obama administration gave Solyndra to build it in the first place. Perhaps Congress should dig further into the construction process at Solyndra to see why a facility built with $300 million of taxpayer money only had $90 million of value, because at first blush, it looks like a lot of money went elsewhere than the facility.

Of course, there could be a simple explanation that the people involved in the sale of the building simply aren’t telling us. The only thing that we know for certain is this: Taxpayers are never, ever going to get back the half-billion that went into this failed project.

Follow Becket Adams (@BecketAdams) on Twitter

[diverdog]

Upside Down: Tech Group Agrees to Pay $90M for Solyndra Building That Cost $300M

Posted on August 25, 2012 by Becket Adams


“Seagate Technology Plc, maker of hard drives and storage devices, has agreed to pay $90.3 million for the former manufacturing plant and headquarters building of bankrupt Solyndra LLC, which was financed by a controversial government loan, according to bankruptcy court documents,” Reuters reports.

So what’s the problem? At least the Solyndra building is one step closer to being sold, right?

Well, considering that the building originally cost $300 million, we’d say this is pretty depressing.

“Seagate’s offer will be considered an initial bid, or ‘stalking horse,’ which could be topped by a competing offer of at least $1 million more when an auction is held, according to court documents filed late Wednesday,” Reuters reports.

“Should a higher bid emerge, Seagate would be entitled to a breakup fee of $1.8 million, a little less than 2.6 percent of the technology company’s offer,” the report adds.

And Seagate wasn’t alone in its interest in the facility.

The Solyndra building “attracted interest from U.S., Chinese and European companies involved in industries such as solar energy, medical-related products, data centers and other technologies that need an ultra-clean manufacturing environment,” the report adds.

“The highest bid came from Seagate.”

Wait a minute. With more than just Seagate competing on the building, $90 million was the winning bid? Hot Air’s Ed Morrissey gives his take:

This was the best competitive price for the facility — only 30% of what the Obama administration gave Solyndra to build it in the first place. Perhaps Congress should dig further into the construction process at Solyndra to see why a facility built with $300 million of taxpayer money only had $90 million of value, because at first blush, it looks like a lot of money went elsewhere than the facility.

Of course, there could be a simple explanation that the people involved in the sale of the building simply aren’t telling us. The only thing that we know for certain is this: Taxpayers are never, ever going to get back the half-billion that went into this failed project.

Follow Becket Adams (@BecketAdams) on Twitter

Actually this not that bad of an outcome. A lot of times banks get pennies on the dollar on OREO properties. At least this is .30 cents on the dollar.

[cleller]

Actually this not that bad of an outcome. A lot of times banks get pennies on the dollar on OREO properties. At least this is .30 cents on the dollar.

Hey that reminds me of a song: "Ac-Cent-Tchu-Ate the Positive". Recorded by Johnny Mercer and the Pied Pipers. The Pied Pipers bit was the thing that really caught my eye.

[sappstuf]

Actually this not that bad of an outcome. A lot of times banks get pennies on the dollar on OREO properties. At least this is .30 cents on the dollar.

Not a bad outcome for Obama fundraising bundler and crony George Kaiser since he will get that money after Obama illegally put private investors in front of taxpayers on recouping costs...

[KantoSooner]

If the building was optimized as a solar cell production facility, then it's going to need significant rebuilding to do anything else. And there will not be another solar cell company in that area anytime soon and perhaps none anywhere in North America.

Seagate will, if I had to guess, use it to build slider assemblies or read/write heads which are about the same level of manufacturing as solar cells in terms of cleanliness required. Seagate also has numerous facilities in the area, so the logistics/personnel issues would be kept to a minimum.

This is an interesting move as Seagate under their founder, Shugart, was a pioneer in offshoring (back in the 1980's). They have huge manufacturing in Bangkok, in Shenzhen and outside Shanghai, in Singapore and some smaller plants in Malaysia. For them to bring any manufacturing back to the US is noteworthy.

[badger]

So I guess cars aren't the only thing that depreciate in value if they're not new, eh?

More likely, Solyndra was based in California, right? Their economy, especially their real estate economy, is in the crapper right now. I'm not completely writing this off, because I think there were some political shenanigans at play in such an untested industry, but whatever. Drop in the bucket when Daddy China is bankrolling your pet projects

[diverdog]

Hey that reminds me of a song: "Ac-Cent-Tchu-Ate the Positive". Recorded by Johnny Mercer and the Pied Pipers. The Pied Pipers bit was the thing that really caught my eye.

I am strictly making a business observation.

[soonercruiser]

Actually this not that bad of an outcome. A lot of times banks get pennies on the dollar on OREO properties. At least this is .30 cents on the dollar.

SCREWED the taxpayers!
Didn't expect you to be outraged on a Dem corporate Cronyism.


Just like GM....give half the company to the unions!
Unions give back to the Dem Party!
Duh!