Senior Treasury Department official warned restructured Solyndra loan might be illegal

Ruh-Roh!

(E2 Wire) — House Republicans released an email Friday evening showing that a senior Treasury Department official in August expressed concern that the Energy Department’s early 2011 restructuring of the solar company Solyndra’s $535 million loan guarantee may have been illegal.

The restructuring put private investors, who were providing another $75 million to the struggling company, first in line for repayment if the company went under. In addition, House Republicans probing Solyndra — which collapsed several weeks ago — say DOE may have violated requirements to consult with Treasury on the revision of the loan agreement.

The Energy and Commerce Committee’s GOP leaders wrote to Treasury Secretary Tim Geithner Friday seeking documents about Treasury’s communication with the White House, DOE and other agencies on the financing.