CARLYLE AND SENATOR CRUZ CAN’T DEFLECT FROM THE REAL REASON JOBS AT PES ARE THREATENED; WALL STREET BAD BETS
Wall Street raiders play the familiar blame game
February 21, 18–
The staged event today with Senator Cruz (R-TX), a consistent antagonist to renewable energy and union jobs, and the Wall Street owners of Philadelphia Energy Solutions (PES) will attempt to shift blame for the company’s recent bankruptcy away from their own mismanagement. As New Energy America has pointed out before, the decade-old Renewable Fuel Standard has been a boon to rural American jobs and has presented no problems for profitability of refineries that were willing to make investments as called for in the law. PES, on the other hand, chose to bet on repeal and diverted resources to its Wall Street master rather than invest in jobs. In fact, as a recent expose revealed, the Carlyle Group used its investment in PES to construct a scheme that prevented PES from making investments in biofuels infrastructure, guaranteed payments to other Carlyle investments, and drove the refinery into bankruptcy. Now, when the inevitable consequences have come, politicians are seeking to point the finger in a familiar place, protections for our environment.
“This is straight out of the corporate raider playbook,” said Mike Carr, Executive Director of New Energy America, “Step one, leverage the company to the hilt to pay off the raiders as quickly as possible. Step two, set up one-sided contracts and starve the company of resources needed to keep it competitive. Step three, make “heads I win, tails you lose” bet with the future of the company. Step four, when the bet fails, blame someone, anyone, else and walk away with all the money.”
“The new angle from Senator Cruz is to use the Carlyle-induced bankruptcy to reward his Texas oil donors. Ted Cruz, who used Goldman Sachs to finance his previous campaigns and has accepted thousands of dollars in campaign contributions from the Carlyle Group, doesn’t care about the workers in Pennsylvania who are the victims of Carlyle’s scheme,” Carr noted. “It’s not surprising that Senator Cruz would carry the water for Big Oil and his donors at the Carlyle Group in their continuing effort to undermine the RFS. What is surprising is he’s willing to so publicly align himself in this case with Wall Street looters that would make Gordon Gekko blush.”
The Rural Clean Energy Jobs Report, and more information about New Energy America, can be found at www.newenergyamerica.org.
New Energy America