As the clock ticks down on reauthorizing the Export-Import Bank, an Australian satellite company facing bankruptcy provides 300 million reasons why the bank's taxpayer-enabled corporate welfare should end on June 30.
That's the sum in U.S. dollars of Export-Import Bank loans to NewSat, which has filed for Chapter 15 bankruptcy, thereby allowing the foreign borrower access to U.S. courts. The bank's board had unanimously approved NewSat's financing in 2012 and 2013. The loans were awarded for purchases from Lockheed Martin.
But in January, the private satellite company defaulted on a $21 million payment to Lockheed, The New American reports. And that “triggered an avalanche of defaults.”
But there have been other mixed signals from the satellite company.
An outside analysis of NewSat revealed lavish dinners and “out of control” travel and marketing costs, plus a fat salary and bonuses for CEO Adrian Ballintine even before bank financing had been completed, The New American reports. So much for due diligence.
Then there's reportedly about $400,000 in payments to a yacht company — so-called “marketing expenses” — that happens to be owned by Mr. Ballintine.
This is how the Export-Import Bank does business — by taking risks with public money that any private lender would reject? That's precisely why this bank should be put out of business.
Read more: http://triblive.com/opinion/editorials/8208235-74/bank-export-import#ixzz3YYQp9PtQ
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