Friday, July 19, 2024
Hawai'i Free Press

Current Articles | Archives

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


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



TEXT "follow HawaiiFreePress" to 40404

Register to Vote


Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together


Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii