Delist. Delay filing. Could Bk.
Hawaii’s Hoku Corp. running out of cash, considering bankruptcy
Pacific Business News by Duane Shimogawa, Reporter
Date: Friday, June 29, 2012, 2:37pm HST
Duane ShimogawaReporter- Pacific Business NewsEmail | Facebook | Twitter | LinkedIn
Troubled Hawaii solar energy products and services company Hoku Corp. said Friday that it has sufficient cash to fund its operations for only nine more weeks and that it may seek bankruptcy protection if it is unable to secure additional financing.
Additionally, Honolulu-based Hoku (Nasdaq: HOKU), which has a solar subsidiary in Hawaii and an unfinished and now-stalled polysilicon operation in Idaho under the name of Hoku Materials, said it expects to be delisted from the Nasdaq on or before July 10, according to a filing with the U.S. Securities and Exchange Commission .
Hoku’s stock fell below the $1-a-share minimum requirement in Dec. 1 and it reached a 52-week low of 7 cents last month. On Friday, Hoku’s stock was up 5 percent to 13 cents.
As of May 31, Hoku had cash and cash equivalents of $5.8 million, other current assets of $7.6 million and current liabilities of $286.7 million.
Hoku also said that it doesn’t have “sufficient resources” to prepare its annual report for the fiscal year ended March 31, and that it wouldn’t be able to file it before the deadline, which was Friday.
Just a couple of weeks ago, Hoku announced that it was pursuing restructuring alternatives, which include seeking a strategic partner to co-invest in the completion of the polysilicon production plant of Hoku Materials and restructuring in bankruptcy. Hoku is working with Imperial Capital to help it in its restructuring plan.
However, if Hoku is unable to get the additional financing, “it believes it will need to seek protection in bankruptcy from its creditors and to liquidate and wind-down Hoku and Hoku Materials.”
Hoku’s CEO, Scott Paul will resign on Saturday and continue as a director and chairman of the restructuring committee. “Jeremy” Xiaoming Yin, the company’s current president, will be named the acting CEO in addition to being president when Paul steps down.
Hoku, through a spokeswoman, told PBN that it is working hard on a restructuring solution, which may include a new investor.
“In the meantime, Hoku Solar continues to execute as one of Hawaii’s top solar-PV providers,” she said.
Duane Shimogawa covers energy, real estate and economic development for Pacific Business News.
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