Government lawyers are now calling Beacon Power, the bankrupt energy firm that received $43 million in Department of Energy loan guarantees less than two years ago, an "empty shell" benefiting bankruptcy lawyers.
According to the Washington Times:
Government attorneys also are criticizing what they said were early estimates by the Massachusetts-based company that its New York plant was worth $68 million and its so-called "flywheel intellectual property" held a value of $28 million to $47 million.
"Those representations proved to be wildly off the mark, and today debtors are empty shells with no interest in the disposition of their remaining assets, consisting of a pot of cash woefully insufficient to pay even its administrative claims," Justice Department attorney Victor W. Zhao wrote in a filing last week in U.S. Bankruptcy Court in Delaware.