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Thursday, April 16, 2015
Final Act 221: Hoku Plant Cut Up, Pieces Auctioned off
By Selected News Articles @ 3:42 PM :: 7505 Views :: Energy, Tax Credits

JH Kelly sells off pieces of Hoku plant in Pocatello

by Michael H. O’Donnell, Idaho State Journal, April 16, 2015 (excerpts)

POCATELLO — Pieces of the Hoku plant in Pocatello, including transformers, reactor vessels and huge electric motors are finding new homes as JH Kelly tries to recoup its losses as the general contractor of the $700 million facility.  (Built with your tax dollars, via crony capitalist Act 221 High Tech Tax Credits, Hawaii.)

JH Kelly bought the Hoku plant after the company declared bankruptcy in 2013 for a purchase price of $8.3 million. Hoku, and all its subsidiaries, filed for Chapter 7 bankruptcy in federal court  — leaving JH Kelly with $25 million in unpaid expenses. Despite being on the hook for millions of dollars, Kelly paid all 104 subcontractors that worked for the main contractor on the Hoku project.

“We did a worldwide marketing effort to sell the plant,” said JH Kelly senior vice president Mark Fleischauer. “We obviously wanted to find a user.”

Unfortunately, Kelly was unable to find anyone willing to purchase the plant as a whole unit.

“It’s a damn shame,” Fleischauer said.

Hoku Scientific Inc., based in Hawaii, started building the plant in Pocatello in 2007 when solar energy was a hot new industry and polysilicon prices were high....

Kelly also filed a lawsuit against Hoku and its parent company Tianwei New Energy Holdings, alleging fraud and racketeering. Last November, U.S. District Judge Lynn Winmill dismissed the lawsuit against Hoku.

JH Kelly alleged the defendants knowingly misrepresented that Tianwei would provide Hoku the financial support needed to fund the project to completion, thereby committing fraud, and in the process violating state and federal racketeering law....

Fleischauer said the Winmill decision has been appealed and he believes the judge erred in his decision.

The JH Kelly executive said the appeal should be heard and decided in three to six months....

read ... Fraud and Racketeering

Background:

2013: Open Letter to Hoku/Tianwei

2012: Hoku Out of Cash in Nine Weeks, So Broke It Can't Write Annual Report

2012: Running to Continue Act 221 Tax Credit Scams

 

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