Contractor Awarded Winning Bid in Hoku Auction

Reported by: Bill Kotowski
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Updated: 11/04/2013 5:18 pm
The troubled Hoku Materials polysilicon plant Pocatello is one step closer to having new ownership after motion for final sale approval was filed with the federal bankruptcy court last Thursday.

JH Kelly will most likely be the new owner of the plant in Pocatello. This sale will only be finalized upon the approval of a federal bankruptcy judge. That is expected to happen November 12.

This comes after the construction company made an offer of $5.273 million to buy the plant in bulk in what is called an overbid. The original cost of building the plant was over 700 million dollars.

In October an auction was held in two parts for the plant; a bulk auction and a piecemeal auction.
There were two bidders involved in the bulk auction with a high bid of $3.7 million.

After the live bulk auction, a piecemeal auction was held online for various components of the plant where the bids in that auction totaled $4,787,585.

After the auction process was completed JH Kelly was one of several companies which requested the opportunity to overbid the piecemeal auction. The company submitted a bid of $5.273 million.

After receiving that bid and reviewing the results of the auction process the trustee has recommended the court approve JH Kelly's bid.

The bid is to buy the facility in bulk meaning, if approved by the court, JH Kelly will have the option to try to sell the plant to a polysilicon company, to repurpose it or to sell its individual components in parts.

We reached out to JH Kelly but their spokesman was unavailable for comment at the time.
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Unhappy - 11/5/2013 5:01 PM
2 Votes
This is a BS insider sweetheart deal. Why not ask all the individual bidders to raise their bids 10 or 15% after the auction? If the judge has any guts, he'll reject this nonsense. This is no way to hold an auction - allowing one or more bidders to "reconsider" their offer or position after a sale is held. The trustee, if he had any guts or integrity, would reschedule a sale with the floor bid of 5.273 million (after having that amount in hand) and then order another bulk and piecemeal auction. This is not kosher. In fact, it stinks.
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