Aaron Glantz/The Bay Citizen

Solyndra's campus in Fremont

One day after the federal government refused to bail out Solyndra, the Fremont-based solar company announced it was filing for bankruptcy and shedding most of its 1,100 workers.

According to a memo released Monday by the House Energy and Commerce Committee, officials with the Department of Energy and Solyndra entered into negotiations "in the first few weeks of August" over a proposed financial restructuring agreement, but were never able to reach an agreement.

DOE also contracted with an outside investment banking firm to scope out potential terms and investors for this deal. The Loan Programs Office staff stated that it engaged in an “interagency process” regarding this development with Solyndra, and the possibility of a second restructuring agreement. Ultimately, DOE determined that a second restructuring was not feasible, and informed the company and its investors of this on August 30, 2011. The Solyndra board met shortly after, and voted to announce its bankruptcy. The announcement was made on August 31, 2011.

The bankruptcy of Solyndra, which benefitted from a $535 million loan guarantee as part of President Obama's stimulus package, has sparked a national debate on the merits of giving government subsidies to green power companies.

The House Energy and Commerce Committee has scheduled a hearing on Capitol Hill for this Wednesday and has invited both the company's CEO Brian Harrison and its CFO W.G. Stover, to testify.