Dell forced to repay millions in state aid

Discussion in 'News Discussion' started by HardwareHeaven, Oct 12, 2009.

  1. HardwareHeaven

    HardwareHeaven Administrator Staff Member

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    Dell has been put in the unpleasant situation of having to pay back millions of dollars worth of monetary aid and tax concessions when it closed a plant which was part of a government backed project. Dell may be forced to pay back up to $318 million which it was given as an incentive to open the plant in North Carolina. Around 900 people lost their jobs.

    The governor of North Carolina - Beverly Perdue has stated that Dells decision to close the plant without meeting its obligations under investment and job standards is a breach of the deal the company had agreed. She is seeking to force the company to pay back everything it received due to the deal.

    Dell has not made any public statement regarding the situation however it certainly is not great PR for the industry giant.

    Allan Campbell: Heaven Media
     
  2. craig5320

    craig5320 Well-Known Member

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    Ouch, kick in the teeth or what - to the 900 people who lost their jobs!
     
  3. Tyrsonswood

    Tyrsonswood HH's curmudgeon

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    I read about them shutting down the plant, looks like they are going to pay for that decision.
     
  4. IvanV

    IvanV HH Assassin Guild Member

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    Considering that the plant was a part of the deal that got them the money, I doubt that they never thought that this might happen. I wonder how unprofitable the plant must have been.
     
  5. Neshi

    Neshi HH's cuddly Blue Bear

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    maybe they just didn't think of the deal anymore. ^^
    highly unlikely but still..
     
  6. CDsDontBurn

    CDsDontBurn AMD & Petrol Heads Mod

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    perhaps unprofitable enough to have Dell pay back the $318 million and still not take as large a blow to their company finances?
     

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