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Last October, I reported here on the strange case of Interoil, a small firm that bought an Alaskan oil refinery from Chevron and shipped it 6,000 miles away to Papua New Guinea. Back in 1997, a subsidiary of Enron bought a big stake in InterOil, and two years later the firm got an $85 million loan from the Overseas Private Investment Corporation (OPIC)–a fraction of the $2.2 billion that Enron and Enron-linked firms sucked out of OPIC in loans and insurance.
One of InterOil’s investors and directors, by the way, is Gaylen Byker, a generous donor to G.O.P. candidates and causes. Byker is also the president of Calvin College in Grand Rapids, Michigan. In 2005, President Bush delivered the College’s commencement speech.
InterOil planned to refine crude oil into gasoline in Papua New Guinea and had all sorts of other plans that were going to make investors rich. Instead, the firm has lost a pile of money, including a $28.9 million loss for 2007, according to a Securities and Exchange Commission (SEC) filing from last week. Meanwhile, the company has $130 million in loans coming due in May and, “We cannot assure that our business will generate cash flow… to enable us to pay our maturing indebtedness.” Hence, the company may need to raise outside money to pay off the debt, but that “to some extent, is subject to general economic, financial, legislative and regulatory factors and other factors that are beyond our control. We cannot be sure that we will be able to obtain the refinancing or new financing on reasonable terms or at all.”
Even as InterOil’s economic prospects dim–its share price as of today was trading at about $17, down from about $44 last June–PIC has been remarkably generous in granting the firm a series of waivers and extensions on its loan payments. The new SEC filing reports that millions of dollars in principal payments due to OPIC during the past few months, have been deferred until 2015.
If mortgage brokers were this understanding, the housing crisis would be solved overnight.
More from Ken Silverstein:
Commentary — November 17, 2015, 6:41 pm
The Clintons’ so-called charitable enterprise has served as a vehicle to launder money and to enrich family friends.
Flor Arely Sánchez had been in bed with a fever and pains throughout her body for three days when a July thunderstorm broke over the mountainside. She got nervous when bolts of light flashed in the sky. Lightning strikes the San Julián region of western El Salvador several times a year, and her neighbors fear storms more than they fear the march of diseases — first dengue, then chikungunya, now Zika. Flor worried about a lot of things, since she was pregnant.
Late in the afternoon, when the pains had somewhat eased, Flor thought she might go to a dammed-up bit of the river near her house to bathe. She is thirty-five and has lived in the same place all her life, where wrinkled hills are planted with corn, beans, and fruit trees. She took a towel and soap and walked out into the rain. Halfway to the river, the pains returned and overcame her. The next thing Flor remembers, she was in a room she didn’t recognize, unable to move. As she soon discovered, she was in a hospital, her ankle cuffed to the bed, and she was being investigated for abortion.
Average amount of time a child spends in Santa Claus’s lap at Macy’s (in seconds):
Beer does not cause beer bellies.
Following the arrest of at least 10 clowns in Kentucky and Alabama, Tennesseans were warned that clowns could be “predators” and Pennsylvanians were advised not to interact with what one police chief described as “knuckleheads with clown-like clothes on.”
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“Matt was happy enough to sustain himself on the detritus of a world he saw as careening toward self-destruction, and equally happy to scam a government he despised. 'I’m glad everyone’s so wasteful,' he told me. 'It supports my lifestyle.'”