Chu takes responsibility for Solyndra loan

WASHINGTON, Sept. 30 (UPI) -- Energy chief Steven Chu took responsibility for allowing a California solar company to get taxpayer money even after it technically defaulted on a federal loan.

Chu spokesman Damien La­Vera said Thursday the secretary OKd the restructuring agreement because it gave Solyndra "the best possible chance to succeed in a very competitive marketplace and put the company in a better position to repay the loan" of $535 million, The Washington Post reported.

The company filed for bankruptcy Aug. 31. The Justice Department has launched a criminal investigation of the company and the loan it received in 2009.

Also Thursday, a law enforcement official confirmed to the Post that criminal investigators are focusing on whether the company and its officers misrepresented Solyndra's finances to the government when seeking the loan or otherwise engaged in accounting fraud.

Solyndra was the first company approved for a loan guarantee under the Obama administration. While concerns Solyndra's finances appeared early on, the company was endorsed by President Obama and received Chu's support. Chu also participated in the groundbreaking for a $750 million factory built mostly with loan funds.