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Polysilicon producer Hoku Materials has received the second tranche of $30 million for a total loan amount of $50 million from Tianwei New Energy Holdings, a vertically integrated solar manufacturer based in China. Hoku also confirmed that it had received $4 million in polysilicon prepayments on March 1 from Solarfun Power, pursuant to the PV company's sales agreement with Hoku.
Hoku said that it will use the aggregate cash proceeds of $54 million to pay down past-due vendor balances and liens, and to continue engineering, procurement, and construction activities at its polysilicon plant in Pocatello, ID.
Tianwei had agreed to provide the second tranche of $30 million no later than Feb. 22; based on that timeline, Hoku planned to achieve its reactor demonstration in March. Since receipt of the funds was delayed two weeks because of the Chinese government's process for approving foreign currency transactions, the polysilicon company said that it now believes the reactor demonstration will take place in April.
"We are pleased that with the receipt of recent cash payments we are able to focus on completing our reactor demonstration in the weeks ahead," said Dustin Shindo, chairman/CEO of Hoku Materials' parent company, Hoku Scientific. "This is a big step in the right direction as we plan to commence shipments from our plant later this year."
