Solyndra CEO Brian Harrison Has Resigned, Company Says

DOVER, Del. — The chairman and CEO of a California solar energy company that sought bankruptcy protection after receiving a half-billion-dollar loan guarantee from the Obama administration has resigned.

Solyndra Inc. said in papers filed in Delaware bankruptcy court Wednesday that Brian Harrison resigned last Friday.

Attorneys for Fremont, Calif.-based Solyndra said Harrison's resignation was contemplated even before the bankruptcy filing and was "consistent with the company's budget and status of its wind-down effort."

Solyndra provided few other details in its court filing. A company spokesman did not immediately return a telephone request for comment Thursday.

Solyndra said Harrison's position superseded by the appointment of a chief restructuring officer. Solyndra's choice for CRO, which is subject to court approval, is R. Todd Neilson, a director of Los-Angeles-based Berkeley Research Group LLC.

According to court papers, Neilson's previous bankruptcy clients include rap mogul Marion "Suge" Knight's Death Row Records, boxer Mike Tyson and Pennsylvania-based beverage company Le-Nature's, which sought bankruptcy protection in 2006 amid financial fraud allegations that resulted in its CEO and several other people being convicted or entering guilty pleas.

Solyndra's court filing came in response to a motion by the Justice Department to appoint a trustee to oversee the bankruptcy case.

The U.S. bankruptcy trustee requested the appointment of a Chapter 11 trustee after Harrison and Solyndra chief financial officer W.G. Stover, citing an ongoing FBI investigation, refused to testify before a House subcommittee investigating the loan guarantee Solyndra received in 2009 from the Department of Energy.

The U.S. trustee also expressed concern that Solyndra officials refused, in an initial debtor interview after the bankruptcy filing, to disclose information about the company's contracts with customers.

Solyndra and Argonaut Ventures I, a private investment group that holds a 39 percent stake in Solyndra's parent company and is providing bankruptcy financing for Solyndra, both objected to the appointment of a trustee.

Solyndra described the motion for a trustee as an "extraordinary overreaction" by the Justice Department to the "political tempest" that has swirled around Solyndra since its Sept. 6 bankruptcy filing – a filing the company claims came as no surprise to federal officials.

"Three days after the bankruptcy filing, armed FBI agents in bulletproof vests (acting in conjunction with the DOE's inspector general) staged an unannounced (but televised) raid on Solyndra's offices, fostering the impression that management misdeeds are to blame for the default on the DOE loan and that Solyndra's bankruptcy was a hostile act, when in fact the DOE had inside access to financial information and management plans and was fully aware of the impending bankruptcy," Solyndra attorney Bruce Grohsgal wrote.

Grohsgal also said in the court filing that one or more DOE representatives had attended all Solyndra board meetings since February, when officials agreed on a loan restructuring that resulted in private investors moving ahead of taxpayers for repayment in case of default.

In a statement released by Solyndra after the February loan restructuring, Harrison said the company had "excellent marketplace momentum" and was confident it was on track to be "cash flow positive at the end of this year."

Harrison joined Solyndra in July 2010, just over a year before the bankruptcy filing. Prior to Solyndra, he was president and CEO of flash memory chip maker Numonyx BV, a company created by Intel, STMicroelectronics and investment company Francisco Partners. Before Numonyx, Harrison served as an executive in Intel's flash memory group.

Solyndra was the first renewable-energy company to receive a loan guarantee under a stimulus-law program to encourage green energy and was frequently touted by the Obama administration as a model. President Barack Obama visited the company's Silicon Valley headquarters last year, and Vice President Joe Biden appeared by satellite at its groundbreaking.

Comments

[Jabawaba]

12:16 PM on 12/12/2011

I'm sure that Harrison took a large chunk of the $535,000,000.00 and is running with it. I'd retire too if I took that much money and can live quite well for the rest of my life on what he took. "ALL" CEO's salary and bonuses should be approved and voted on by the stockholders (not what stock the CEO's have) as they give each other raises even when the company is doing bad.

[biskitdaddy]

09:59 AM on 10/17/2011

"I MISS YOU, JESSICA!"

[BlacknProud310]

09:47 AM on 10/17/2011

It’s often claimed that the Solyndra loan guarantee was “rushed through” by the Obama Administration for political reasons. In fact, the Solyndra loan guarantee was a multi-year process that the Bush Administration launched in 2007.

You’d never know from the media coverage that:

1. The Bush team tried to conditionally approve the Solyndra loan just before President Obama took office.
2. The company’s backers included private investors who had diverse political interests.
3. The loan comprises just 1.3% of DOE’s overall loan portfolio. To date, Solyndra is the only loan that’s known to be troubled.
http://thinkprogress.org/romm/2011/09/13/317594/timeline-bush-administration-solyndra-loan-guarantee/

[FXBelle]

05:39 PM on 10/14/2011

Somebody needs to go to jail and I would be really comfortable if we started with Harrison and work our way down! While we are at it, we should take a good hard look at those in Congress and the White House that pushed for the deal as well. I wonder how much in kick backs those guys got! Whatever the amount, it should be tripled and taken out of their hides to give BACK to the Americans who are suffering for it now! Take the money and give people JOBS!

[biskitdaddy]

04:30 PM on 10/14/2011

"Go on, take the money and run, WHOO HOO HOO!"

[Windsock]

10:39 AM on 10/14/2011

Noted-Republicans going after an alternative energy (solar) company for about $0.5 Billion
Noted-A very questionable Iraq war promised to not be more than $20 Billion but actually more like $4+ Trillion.

What, no investigation?

[rotorhead1871]

12:28 AM on 10/14/2011

run and hide with your multi millions in bonuses and "severance".....isnt America a beautiful country???

[skyhigh139]

11:55 PM on 10/13/2011

all they let through from me are meaningless quips, this place sucks

[skyhigh139]

11:48 PM on 10/13/2011

scam after scam after boondoggle, when is it going to end, never this is the creative
plan, they are gonna milk us for every last dollar, then start a new and bigger war,
the biggest this planet has ever seen

[essayons7]

11:43 PM on 10/13/2011

maybe he will go to Canada where Amnesty International will call for his arrest.....

[marmsed]

11:33 PM on 10/13/2011

If Obama is so eager to dole out money to an almost defunct company, maybe he should be responsible and pay back that money to the government. This is sickening that there is no responsibility taken in a case like this. JUST STUPID!

[stripedbass7]

11:28 PM on 10/13/2011

HEY WHITE HOUSE , Is THEYRE ANBODY THERE ? maybe we can give unemployed americans" an official White House Check, kinda like the ol "E" ticket from Disneyland { R.i.p. Walt Disney, The only 1 with any Real Sense}
They can take this White House " E" ticket For the ride of Their Life. All They have to Do, is Believe ANYTHING you say.

Isnt that right George. Mission Accomplished

[shmh1]

11:28 PM on 10/13/2011

Is the Obama Administration still giving $737 million to a Tonopah Solar, a subsidiary of California-based SolarReserve? PCG is an investment partner with SolarReserve. Nancy Pelosi’s brother-in-law happens to be the number two man at PCG

[stripedbass7]

11:23 PM on 10/13/2011

second thought, No thank you. Enjoy your Dirty $$$$$$$ gentlemen"

[stripedbass7]

11:22 PM on 10/13/2011

Now a NICE PORTION of that $500 Million thats gone ?? can be used for his Defense. I shoulda went to law school, then i could take taxpayer $$$$$$ & defend scum & make Millions.