Hoku Materials Inc. and Solarfun Power Hong Kong Ltd. have altered their polysilicon supply contract to modify the timing of when Solarfun is obligated to pay Hoku $23 million in additional prepayments for polysilicon, while adjusting Hoku's deadlines for commencing shipments to Solarfun. Pricing, volume and other material terms of the agreement were unchanged.
Solarfun had already paid Hoku $32 million in prepayments through October 2008. Before the amendment, Solarfun was obligated to pay Hoku $18 million by March 31, 2009, and an additional $5 million by March 31, 2010, as a prepayment for polysilicon products, the companies explain.
The amendment provides that the $18 million can be paid in installments, including $5 million that was paid on March 30, 2009, $8 million to be paid in July 2009, $5 million to be paid in increments of $1 million in August and September 2009, and $3 million to be paid in October 2009. The $5 million that was payable on March 31, 2010, is now payable in January 2010.
In exchange for Hoku's agreement to adjust the prepayment timing, Solarfun has agreed to extend the date when Hoku is obligated to commence shipments of polysilicon from September 2009 to March 2010.
SOURCES: Hoku Materials Inc., Solarfun Power Hong Kong Ltd.