Hoku lays off 100 in Idaho and plans to restructure polysilicon business

Contractors have begun foreclosure proceedings against Hoku Materials forcing the Chinese-backed polysilicon manufacturer to lay off 100 workers even as the $700 million Pocatello plant was near the beginning of production.

Hoku announced that it received an additional loan from China Merchant's Bank, which is secured by a letter of credit drawn by Hoku's parent company, Tianwei New Energy Holdings Co. But it said its was not enough to covers its debts.

"The proceeds of the loan are insufficient to pay down current liabilities, resume construction, or start commercial operations," said Scott Paul, CEO of Hoku Corp. "The loan proceeds will be used to fund working capital requirements while we plan for a restructuring of our liabilities, and the liabilities of our subsidiary Hoku Materials, Inc.

Hoku was prepared to begin producing polysilicon, the raw material for power producing solar panels. But the market for the material has taken a dive and has been complicated by a U.S. Department of Commerce ruling May 17 that Chinese solar manufactures were dumping solar panels in the U.S. below cost.

it also installs solar power systems in Hawaii. And recently it announced a reseller agreement to establish Tianwei Solar USA Inc., a wholly owned subsidiary of Hoku. But it ceased business activities and terminated all staff at Tianwei Solar USA, Inc.

Its financial situation has remained perilous. It reported as of March 31, it estimated it had , its preliminary estimates of cash, other current assets and current liabilities was approximately$7.7 million in cash, $6.7 million in other assets, and $278.8 million in liabilities. Those liabilities $74.4 million of accounts payable at Hoku Materials.

Hoku hired Imperial Capital as financial advisor to assist with its restructuring effort, Paul said.

The layoffs were necessary to conserve cash, Paul said.

Hoku Solar would continue to seek opportunities to sell Tianwei's modules, The company said in its press release. It's main business, building solar power facilities based in Hawaii, will not be affected.

"We do not intend to restructure Hoku Solar, as it is operated as a stand-alone business, which supports its operating cash requirements from sales revenue,” Paul said.

A Chinese Scamarack - $14.4M

A Chinese Scamarack - $14.4M in assets vs. $278M in liabilities. Where do I go to give them my money? Next up, at the plate: Dynamis

This Is a Job

For Romney Man! He will show those Commies the true meaning of Capitalist Dog.

You mean

the crony capitalist system we have in the USA?

Ya whatever

the keyword talking points your assigned to say

He's a Canadian

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It you go online and yell FAQ YOU TOO

You are cut off at the well son.

This is a job for Romney

Romney is an idiot that will never be president

But he will be god of his

But he will be god of his own planet, which is much better.

But how, without a flotilla of virgins?

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It you go online and yell FAQ YOU TOO

You are cut off at the well son.

Who did not see this coming?

Who did not see this coming? Once the lawsuits started to avoid paying their electric bills it was apparent.

Obama will give them some green

Green energy is going to be the future. ;-) I'm sure he'll give them 500 million and then they can contribute 250 million to his campaign, give themselves huge salaries and then declare bankruptcy.

Y

Y

Because some old fort said so.

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It you go online and yell FAQ YOU TOO

You are cut off at the well son.

but I thought...

Idaho's economic future was going to benefit from closer ties to the Chinese. Otherwise, why has Otter spent so much money courting them?

The Chinese are probably wondering how they were dupped

by Woody, the Toy Story Cowboy? How many $500,000 campaign contributions were given in exchange for visas? Another Otter train wreck happening before our eyes. My Prediction, Hoku will soon pack up it's toys and leave Idaho. Wasn't Idaho Power raking them over the coals recently? I guess they just didn't realize Idaho has the same amount of corruption all the way to the top like some of those Chinese villages. Soon as you step foot into this state to operate, all the usual suspects and vultures will be feeding off your flesh like you were fresh carrion.

Yo, Gus it was down the tubes with or without them.

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The Chinese ain't no dammed good at making shoes.

Yup

.