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Ohio reaches $1.5 million settlement with manufacturing company for unpaid loans

Norwalk Reflector Staff • Feb 22, 2014 at 2:07 PM

The Ohio Development Services Agency (DSA), the Ohio Air Quality Development Authority (OAQDA), and the Ohio Attorney General’s Office announced that the three agencies have reached a $1.5 million settlement with a Toledo manufacturing company for unpaid loans. The settlement resolves collections actions against Buckeye Silicon for loans owed to DSA and OAQDA.

“This settlement and payment is a significant recovery of taxpayer funds, especially given that these types of debts are historically very difficult to recover,” Ohio Attorney General DeWine said. “I am pleased that our office was successful in protecting the interests of Ohio taxpayers by securing this payment.”

“The company failed to fulfill commitments to repay Ohioans and create jobs,” DSA Director David Goodman said. “Where commitments are not met, state partner agencies will work together to clawback taxpayer money.”

“The State of Ohio succeeded in efforts to protect taxpayers from a company that did not follow through on its obligations,” said Chadwick Smith, Executive Director for OAQDA. “The OAQDA recognizes the important collaboration with the Attorney General and the Development Services Agency in achieving a resolution.”

Buckeye Silicon is a Toledo-based company which sought to produce polysilicon for use in solar panels. On October 12th, 2010, OAQDA loaned Buckeye Silicon $1,428,000 through its Advanced Energy Job Stimulus Program. On October 15th of that same year, DSA issued Buckeye Silicon a $1.3 million Research and Development Loan.

However, Buckeye Silicon did not meet the loan repayment schedules, and the loans were then declared in default by both state agencies.  As a result, DSA and OAQDA certified the loan to the Attorney General’s Office for collections. The settlement finalized today accepts a $1.5 million payment made last week to resolve both loans and related litigation.

The law firm of Organ, Cole, and Stock, LLP, represented the state agencies in the collections litigation as special counsel, with the assistance of the Ohio Attorney General’s Collections Enforcement Section.

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