Hoku trustee grants $453.34 million claim under Tianwei settlement

By Caroline Salls

Pittsburgh, April 8 – Hoku Corp. Chapter 7 trustee R. Sam Hopkins requested court approval of a compromise related to secured creditor Tianwei New Energy Holdings Co., Ltd. $452.88 million in financing claims filed against Hoku, according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Idaho.

Specifically, Tianwei filed a $94.78 million secured claim and a $358.09 million unsecured claim.

In July 2015, Hopkins filed a complaint against Tianwei asking the court to subordinate the claim “based in part on the fact that Tianwei appointed and controlled a majority of the board of directors of Hoku Corporation (all of which were employed by Tianwei) since it acquired a majority of Hoku Corporation’s stock in 2009.”

The trustee alleged that those directors “participated in decisions that resulted in the irrational acquisition of further debt and otherwise violated their duties of care and loyalty owed to the debtor and the debtor’s creditors.”

Although the complaint was dismissed last month, Hopkins said he planned to file an amended complaint.

Under the proposed settlement, Tianwei’s will have a $452.34 million unsecured claim against Hoku, which will be partially subordinated to claims filed by Hemlock Semiconductor Corp., Oracle America, Inc. and the Ultimate Software Group, Inc.

Hoku is a Pocatello, Idaho-based polysilicon manufacturer that filed for bankruptcy on July 5, 2013. The Chapter 7 case number is 13-40838.

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