JH Kelly offers to pay USD 5.3m for Hoku polysilicon plant

Nov 8, 2013 - US construction company JH Kelly made the highest bid of USD 5.27 million (EUR 4m) for the Pocatello polysilicon plant of bankrupt US solar firm Hoku Corp, the Idaho State Journal reported Wednesday, citing the offerer.

Some USD 700 million have been invested in the plant, which JH Kelly itself helped build under a contract from Hoku back in 2008.

An attempt to sell the facility in pieces attracted bids of no more than USD 4.78 million, while the second highest bid for the whole plant, after JH Kelly’s, was for USD 3.7 million, according to the report. The journal said that the federal court was to decide whether to accept the construction firm’s offer on November 12. The federal trustee appointed after Hoku filed for bankruptcy this summer has recommended that JH Kelly’s bid be okayed.

Early in July Hoku Corp and two of its divisions filed for Chapter 7 bankruptcy protection in the US Bankruptcy Court in Idaho. Under Chapter 7 the company suspends operations and a trustee is appointed to liquidate its assets in order to pay creditors. At the time, JK Kelly was owed USD 25 million by the solar company for contracted services.

The potential buyer plans to cooperate with the city of Pocatello and the Bannock County Economic Development Commission to find a new occupant for the property. It hopes to recover some of the amount it did not get from Hoku, the Idaho State Journal said.

(USD 1 = EUR 0.745)

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