The long-running saga over the sale of Hoku’s mothballed polysilicon plant has made some progress towards a conclusion.
The facility in Pocatello, Idaho was resold at auction on Tuesday to the main contractor who built it, JH Kelly, for US$8.3 million.
The company was announced as the highest bidder at an auction in October with a bid of US$5.3 million. But the sale was ruled to have happened outside the terms laid out by the bankruptcy court and a judge ordered the auction to be done again.
Judge Jim Pappas denied that he ordered the fresh auction because of the size of the winning bid insisting that it was an issue of process
“In this context, process is important. What came to me last time was inconsistent with the order from the court,” AP reported him as saying.
JH Kelly claims it is owed US$25 million for work done at the plant, in which Hoku is thought to have invested US$700-800 million.
“We want to work with the City of Pocatello and the Bannock County Economic Development Commission to mitigate the sting of Hoku/Tianwei’s broken promises, help them attract a new user to the property and recoup as much as we can of the monies that we are owed,” JH Kelly said after wining the original auction.