Honolulu based solar manufacturer Hoku has reportedly filed for bankruptcy.
The company has filed for Chapter 7 bankruptcy at a Pocatello federal court, with debts of approximately US$1 billion, according to the Idaho Statesman. A creditors meeting has been scheduled for 31 July 2013.
After investing in a US$700 million polysilicon plant in Idaho, Hoku was hit by falling polysilicon prices, which plummeted 60% in 2011. The company’s CEO Scott Paul resigned in June 2012 in order to oversee financial restructuring, and it voluntarily delisted itself from the NASDAQ stock exchange a month later.
Hoku, whose partners include leading names such as Jinko Solar and Suntech, ceased construction of its polysilicon plant in Idaho (run by subsidiary Hoku Materials) and laid off 100 employees in May 2012.
The plant is reportedly being managed by bankruptcy trustee R. Sam Hopkins and has been put on 24-hour security lockdown.
According to NASDAQ, Hoku stock is currently at $0.04 and $0.02 per share.