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With federal loans blocked, Fisker halts work on Project Nina, lays off 66 workers
Fisker Automotive's bumpy 2011 appears to have given way to an even rockier 2012. A little more than a month after recalling 239 of its Karma plug-ins, Fisker has now stopped working on its second electric vehicle, following the US government's decision to suspend its federal loans. The manufacturer confirmed the news in an email yesterday, adding that a total of 66 workers in Delaware and California have been laid off, as a result. In 2009, the Department of Energy provided Fisker with $528.7 million in federal loans, but according to spokesman Roger Ormisher, access to those funds have been blocked since May. The money was supposed to be used to launch the Karma and Fisker's second, US-manufactured EV, known as the Nina. The Karma began rolling out to market in July, but did so well behind schedule, spurring the DOE to suspend its loan."Our loan guarantees have strict conditions in place to protect taxpayers," Department spokesman Damien LaVera explained in an email to Bloomberg. "The department only allows the loan to be disbursed as the company meets certain milestones and demonstrates results." Thus far, Fisker has drawn on only $193 million of federal funds and is looking to renegotiate the terms of the loan, in the hopes of accessing the remaining $336 million. The DOE, however, is still under intense scrutiny because of September's Solyndra debacle, so it's difficult to say what a renegotiated deal would look like. The manufacturer, for its part, says it's taking no risks, telling GigaOM that it "continues to pursue alternative funding sources." In the meantime, it'll continue to focus on the Karma for 2012, and hopes to revive Project Nina at a later date.
Palo Alto Library to loan out Google Chromebooks alongside real books
Google has teamed up with the Palo Alto Library to offer its Chromebooks on loan, as part of a pilot program slated to kick off in January. As Wired explains, the Silicon Valley library has long offered laptops for visitors to use, though these devices were only available for two-hour windows, and were forbidden from leaving the premises. A few months ago, however, Google approached the library about offering Chromebooks for longer periods, in the hopes of bringing the device's cloud-based "shareability" to a wider audience. Palo Alto's librarians tried out 21 Chromebooks over the course of one month before deciding to loan them out for one-week periods, beginning next year. The notebooks have been available for on-grounds use for the past month, though according to Senior Librarian Jessica Goodman, the institution's Windows-based laptops are still more popular among patrons. "People would try it and say, 'That was pretty cool. I wish I could do word processing with that,'" Goodman told Wired, adding that the forthcoming one-week loans should give users more time to familiarize themselves with the device, and "spark a little bit of interest." East Coasters, meanwhile, can reap similar benefits at the Samsung Experience store in New York, where Chromebooks are now available on loan from the Chrome Zone. Check out the source link for more details.
SouthPeak settles in SEC violation dispute
Two Worlds publisher SouthPeak Interactive ended up in some hot water with the U.S. Securities and Exchange Commission last November, when the government agency announced it would bring a civil injunction against the publisher's chairman, Terry Phillips. The reason for the SEC suit was SouthPeak's failure to properly document a loan given to the publisher by Phillips in early 2009. Rather than drag out the investigation, SouthPeak decided to settle with the SEC earlier this week on unspecified terms. SouthPeak CEO Melanie Mroz explained in a statement that the publisher cooperated with the SEC since it brought the investigation before them last year. She added, "In the end, however, it made the most sense for the company and Terry to negotiate an acceptable settlement that does not require us to admit any wrong-doing and close this chapter as we constantly strive to improve our processes, systems and personnel to meet our obligations as a public company."
Amazon blocks Lendle e-book sharing service (update: it's back!)
Whether via public library or personal collection, e-books may be getting harder to borrow and loan out -- HarperCollins put the squeeze on government-funded rentals last week, and today Amazon has allegedly disabled e-book sharing startup Lendle with one fell stroke. Lendle allows readers to trade e-book rentals, in a fashion, by tapping Amazon's API to list books they agree to loan out, and in return, gain access to a Lendle database of books available to borrow from readers like themselves. The service allegedly fell under the auspices of Amazon's existing 14-day, one-time-only loaning policy, but that didn't stop Amazon from revoking Lendle's access to the API, effectively shutting the service down. According to the no-reply email Lendle received, the reason is that the service doesn't "serve the principal purpose of driving sales of products and services on the Amazon site." Perhaps there's some deeper reason behind the move, but that explanation certainly sounds pretty narrow-minded. Update: Well that was quick -- Lendle is now reporting that Amazon has reinstated its API access under the condition that Lendle disables its Book Sync tool, which is a non-essential feature anyway. Great, just in time for bedtime stories on the west coast as well.
Amazon enables Kindle e-book lending
This is great news for the mom of at least one Engadget editor (who has been despairing at her inability to share e-books with Aunt Kathy). That's right: Amazon has enabled Kindle book loaning on select titles. Of course, there are caveats: books can be loaned only once, for a period of fourteen days. As you'd suspect, the loaned books can be read using the e-reader itself or the free Kindle app for any of your various devices (including iOS, BlackBerry, Android, PC, and Mac). While a book is being borrowed you can't read it yourself, and the publisher has the final word on which titles are eligible for lending. Exciting, right? At least as exciting as the opportunity to finally discover what The Secret Life of Bees might be.
38 Studios Rhode Island deal still up in the air
Just when we thought 38 Studios' epic quest to move its guild headquarters to Rhode Island was nearing its conclusion, a posting on the blog of a local television news outlet casts a bit of doubt on the successful outcome of the proceedings. Reporter Ted Nesi writes that the state's Economic Development Commission is itching to close the $75 million loan it's taken out for 38 Studios. However, if Lincoln Chafee wins the governorship in today's election, it could trigger a showdown, given the candidate's outspoken criticism of the deal. The other leading candidate, Frank Caprio, has said that if elected, he will "march down to EDC headquarters on Wednesday to do something unspecified about 38 Studios." In other 38 Studios news, Amazon has recently published the official box art of Kingdoms of Amalur: Reckoning, the first official game to come out of Curt Schilling's company (currently slated for a September 2011 release). Check out the details, as well as a new screenshot, at 38gamers.
Amazon announces 14-day lending feature for Kindle books, newspapers and magazines for Kindle apps
Nook users can already lend ebooks they've purchased to others, and it looks like Kindle users will soon be able to do the same. Amazon has just announced that it will be offering a similar feature "later this year" that will let folks lend books they've purchased to other Kindle users for a 14-day period, during which the person that actually purchased the book won't be able to read it themselves. That feature won't be available for all ebooks, however, as it will be up to individual publishers and rights holders to enable it for a particular book. What's more, Amazon has also announced that Kindle newspapers and magazines will soon be readable on the various free Kindle apps available for other devices -- look for that feature to launch in the "coming weeks."
38 Studios' loan from Rhode Island detailed in new report
Thanks to documentation from the Rhode Island Economic Development Corporation, we now have a better idea of the terms involved in 38 Studios' controversial move from Massachusetts to R.I. Obtained by WPRI, the report kinda explains what's going on: 38 Studios will receive $51 million from the state; $13 million as soon as Curt Shilling's studio signs the contract to move and another $38 million as the company achieves milestones over the next 15 months. The remaining $20 million is held in some reserve to assure three years of debt payment, which is tied to other caveats. 38 Studios also has a strict job creation schedule over the next three years. The developer must have 125 full-time jobs within a year of signing for the loan, another 175 the following year and 150 more the year after. That may just be numbers to many of you out there, but industry human resource representatives and studio directors just spit coffee all over their monitors. The studio will be penalized $7,500 per year for each of the 450 jobs it doesn't create. Obviously, if you do the math, it's cheaper not to hire for the full-time job and take the penalty. 38 Studios must also announce the location of its new studio operations and corporate headquarters by November 30, 2010 -- note: the company just has to say where it's going, not actually get there. Also, the closing of the loan requires a "signed, enforceable" 10-year lease for 38 to stay in Rhode Island. Looks like R.I. wants to make sure that it's not paying to raise a studio -- which, to date, hasn't released a single project -- and watch it leave for California or Canada after it gets all that cash.
38 Studios relocation loan in jeopardy
Democratic Rhode Island gubernatorial candidate Frank Caprio has flip-flopped in his stance towards a $75 million loan from the state's Economic Development Corporation to fledgling game maker 38 Studios. The development house, founded in 2006 by former Major League Baseball pitcher Curt Schilling, is hard at work on the top-secret Copernicus MMORPG and was offered the lucrative deal in exchange for moving the company's headquarters from Massachusetts to Rhode Island (and bringing a proposed 450 high-paying jobs to the state's economy). Caprio, who currently serves as Rhode Island's general treasurer, is one of several political candidates condemning the deal, a marked change from his views in past weeks, notes the Boston Globe. "I am not going to stand by and watch us gamble taxpayer dollars on a bad deal when there are thousands of small businesses in need of more access to capital," Caprio said in a press release dated August 31st.
Rhode Island treasurer seeks to block $75M loan to 38 Studios
Rhode Island gubernatorial candidate Frank Caprio, who is also the general treasurer, is working to block the state's $75 million loan to 38 Studios. The Boston Globe reports Caprio wants to stop the loan guarantee, which the studio would receive in exchange for moving from Massachusetts to Rhode Island, until a new governor is sworn in. Several other gubernatorial candidates have also expressed concern. The multi-million dollar deal, which would leave Rhode Island taxpayers with the bill if 38 Studios was to go under, is key to the company creating a proposed 450 jobs in the state by the end of 2012. 38 Studios currently employs approximately 200 staff.
Rhode Island politicians speak out against 38 Studios deal
Though 38 Studios hasn't yet released a video game, it's already bringing together a particular community of people: Rhode Island politicians. The state's Economic Development Corporation (EDC) recently lured the studio over from its current home in Massachusetts with the promise of a $75 million loan -- a sum which just about every Gubernatorial candidate from the state has taken to publicly criticizing since it was first announced. For instance, Independent candidate Lincoln Chafee called for "the Board to suspend the commitment to 38 Studios," and to reconsider whether its the best way for Rhode Island to spend the loan. Moderate candidate Ken Block released a statement saying "seventy-five million dollars could go a long way to help many small businesses here in Rhode Island," also calling for the deal to be halted. Don't these guys realize that their campaigning might just be imperiling the stability of 450 futurejobs? Cut it out!
Rhode Island pitches a $75M loan offer to 38 Studios
States are always highly competitive when it comes to luring industries to their neck of the woods to bolster the local economy. From movie shoots to auto plants to hospitals, states tend to be shameless in offering incentives and tax breaks to benefit from an economic injection by these companies. It's interesting to see that MMO studios are being courted as well. Worlds in Motion is reporting that Rhode Island is enticing Curt Schillings' 38 Studios to relocate from Massachusetts in exchange for a $75,000,000 guaranteed loan under relief provisions for high-tech companies -- a provision that Massachusetts does not offer. The loan would represent a significant investment for the company, but Massachusetts is attempting to provide reasons for 38 Studios to stay put, including citing that it has better access to talent in the state. As the MMO genre expands and more studios pop up, will we see an increase in states fighting over these companies in an effort to help their economies? In any event, Copernicus' developer now has a difficult decision to make, especially for this ex-Boston Red Sox pitcher.
Department of Energy lends Fisker $528.7 million for Karma and Project Nina
Well, it seems like that sex-on-wheels advert has done its job. Fisker's development of the oh so desirable Karma PHEV and its lower-cost sibling, now known as Project Nina (inspired by Christopher Columbus' escape from the Old World, no less), has been given a significant boost by the US government. Henrik Fisker himself has been quoted as saying that once the conditional loan is in, "it wouldn't take long to get the lower-cost plug-in hybrid on the road." If the company carries over the aggressive styling from the luxury model, it might have a real winner on its hands, though -- we know -- it's got to be cheap enough first. While waiting for that $528.7 million to work its magic, you can gawk at the solar paneled roof on the Karma, to be found after the break.
Tesla, Ford, Nissan all receive electric car development loans from US government
High five, Tesla fans -- everyone's favorite incredibly controversial electric car company has just been granted $465m in loans from the Department of Energy's Advanced Technology Vehicle Manufacturing program. The bulk of the money will go towards that postponed Model S factory, while the remaining $100m will be used to fund an electric powertrain manufacturing facility that will sell parts like motors and battery packs to other carmakers. Tesla wasn't the DOE's only big winner: Nissan received $1.6b (billion!) to build batteries and EVs in Tennessee and Ford received an undisclosed amount to build two upcoming electric cars, but since those companies have largely drama-free upper management that isn't constantly involved in lawsuits, it feels a little more routine. Still, it's an exciting time -- let's hope all these tax dollars turn into affordable, convenient electric transportation sooner rather than later.Update: A "congressional source" has told the AP that Ford's getting $5.9 billion, so yeah, the Oval's still the big dog. Read - Tesla Read - Ford Read - Nissan
Nokia signs ???500 million loan for Symbian R&D
You'd think a company like Nokia could just finance whatever it wanted, but just to be safe, it's signing a loan agreement with the European Investment Bank (EIB) to the tune of €500 million ($623.9 million). Why the sudden need for cash? According to Reuters, the five-year loan will be used in part to "finance software research and development (R&D) projects Nokia is undertaking during 2009-2011 to make Symbian-based smartphones more competitive." More specifically, those R&D activities will "also benefit the work of the Symbian Foundation and its development of open-source software for mobile devices." Sadly, that's absolutely it for details, but we get the idea we'll be hearing more about this soon. We hear you can accomplish some pretty wild goals with a half billion Euros.
Ohio library now loaning video games
Eager bookworms visiting the Washington-Centerville Public Library in Centerville, Ohio, will face exposure to the new-fangled "video game" entertainment medium, as the library will now be loaning PS2, PS3, Wii and Xbox 360 games. According to the Dayton Daily News, the library will carry two categories of games: Titles aimed at families, and ones aimed at players aged 10 and up (sans adult-only games). Each game will be available for one-week loan with the option of one renewal.You can check for yourself which games are available in the library's online catalog, though the Dayton Daily News has gone and confirmed the presence of Guitar Hero, Kung-Fu Panda, Madden NFL 08 and, err, Iron Man. That one's probably meant to frighten the kids into reading books again.[Via Shacknews]
EA takes out $1 billion loan for Take-Two acquisition
Electronic Arts has received commitments for a $1 billion loan from various financial institutions toward its acquisition of Take-Two. The company has up until January 9, 2009 to tap the funds in its $2 billion hostile takeover and there's been no update on the deal since Take-Two's last rejection.GamePolitics spoke with Wedbush Morgan analyst Michael Pachter who says that after the Pandemic/BioWare acquisition that EA is a little strapped for cash. He believes the timing of this loan isn't "particularly unusual" and it could be possible that EA might make a higher bid for Take-Two.
Judge lets Amp'd tap $7.5 million loan
Bankrupt Amp'd Mobile has received an ever-so-brief stay of execution this week, thanks in no small part to the federal court system. The US Bankruptcy Court in Delaware has ruled that the MVNO has permission to use $7.5 million in cash from its largest creditor (and underlying service provider) Verizon, a sum Verizon was ultimately hoping to avoid paying out. $2.45 million of that loan will be need be held in reserve, but the remainder should be enough to keep Amp'd up and running until June 25. What'll become of the carrier after Monday, though, remains to be seen, pending the result of a lawsuit asking the court to prevent Verizon from shutting off its service altogether.[Via mocoNews]
