Washington Babylon — March 31, 2008, 10:20 am

Murky InterOil

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.

Share
Single Page

More from Ken Silverstein:

Commentary November 17, 2015, 6:41 pm

Shaky Foundations

The Clintons’ so-called charitable enterprise has served as a vehicle to launder money and to enrich family friends.

From the November 2013 issue

Dirty South

The foul legacy of Louisiana oil

Perspective October 23, 2013, 8:00 am

On Brining and Dining

How pro-oil Louisiana politicians have shaped American environmental policy

Get access to 165 years of
Harper’s for only $45.99

United States Canada

CATEGORIES

THE CURRENT ISSUE

September 2016

Tennis Lessons

= Subscribers only.
Sign in here.
Subscribe here.

Tearing Up the Map

= Subscribers only.
Sign in here.
Subscribe here.

Land of Sod

= Subscribers only.
Sign in here.
Subscribe here.

Only an Apocalypse Can Save Us Now

= Subscribers only.
Sign in here.
Subscribe here.

The Watchmen

= Subscribers only.
Sign in here.
Subscribe here.

Acceptable Losses

= Subscribers only.
Sign in here.
Subscribe here.

view Table Content

FEATURED ON HARPERS.ORG

Post
 
Andrew Cockburn on the Saudi slaughter in Yemen, Alan Jacobs on the disappearance of Christian intellectuals, a forum on a post-Obama foreign policy, a story by Alice McDermott, and more
Artwork by Ingo Günther
Article
Land of Sod·

= Subscribers only.
Sign in here.
Subscribe here.

Nobody in academia had ever witnessed or even heard of a performance like this before. In just a few years, in the early 1950s, a University of Pennsylvania graduate student — a student, in his twenties — had taken over an entire field of study, linguistics, and stood it on its head and hardened it from a spongy so-called “social science” into a real science, a hard science, and put his name on it: Noam Chomsky.

At the time, Chomsky was still finishing his doctoral dissertation for Penn, where he had completed his graduate-school course work. But at bedtime and in his heart of hearts he was living in Boston as a junior member of Harvard’s Society of Fellows, and creating a Harvard-level name for himself.

Photograph by Mike Slack
Article
The Watchmen·

= Subscribers only.
Sign in here.
Subscribe here.

Nobody in academia had ever witnessed or even heard of a performance like this before. In just a few years, in the early 1950s, a University of Pennsylvania graduate student — a student, in his twenties — had taken over an entire field of study, linguistics, and stood it on its head and hardened it from a spongy so-called “social science” into a real science, a hard science, and put his name on it: Noam Chomsky.

At the time, Chomsky was still finishing his doctoral dissertation for Penn, where he had completed his graduate-school course work. But at bedtime and in his heart of hearts he was living in Boston as a junior member of Harvard’s Society of Fellows, and creating a Harvard-level name for himself.

Illustration by John Ritter
Article
The Origins of Speech·

= Subscribers only.
Sign in here.
Subscribe here.

"To Chomsky...every child’s language organ could use the 'deep structure,' 'universal grammar,' and 'language acquisition device' he was born with to express what he had to say, no matter whether it came out of his mouth in English or Urdu or Nagamese."
Illustration (detail) by Darrel Rees. Source photograph © Miroslav Dakov/Alamy Live News
Article
Acceptable Losses·

= Subscribers only.
Sign in here.
Subscribe here.

Nobody in academia had ever witnessed or even heard of a performance like this before. In just a few years, in the early 1950s, a University of Pennsylvania graduate student — a student, in his twenties — had taken over an entire field of study, linguistics, and stood it on its head and hardened it from a spongy so-called “social science” into a real science, a hard science, and put his name on it: Noam Chomsky.

At the time, Chomsky was still finishing his doctoral dissertation for Penn, where he had completed his graduate-school course work. But at bedtime and in his heart of hearts he was living in Boston as a junior member of Harvard’s Society of Fellows, and creating a Harvard-level name for himself.

Photograph by Alex Potter

Chances that college students select as “most desirable‚” the same face chosen by the chickens:

49 in 50

Most of the United States’ 36,000 yearly bunk-bed injuries involve male victims.

In Italy, a legislator called for parents who feed their children vegan diets to be sentenced to up to six years in prison, and in Sweden, a woman attempted to vindicate her theft of six pairs of underwear by claiming she had severe diarrhea.

Subscribe to the Weekly Review newsletter. Don’t worry, we won’t sell your email address!

HARPER’S FINEST

Mississippi Drift

By

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.'

Subscribe Today