Hoku Scientific Inc. and Solarfun Power Hong Kong Ltd., a subsidiary of Solarfun Power Holdings Co. Ltd., have amended their polysilicon supply contract to allow Solarfun until Feb. 15, 2008 to process the required statutory approval for the issuance of a $44 million standby letter of credit.
Prior to the amendment, this standby letter of credit – which serves as security for Solarfun's obligation to pay Hoku $45 million in product prepayments during the period from Sept. 30, 2008 through March 31, 2010 – would have been required by Jan. 10, 2008. In exchange for the extension of time, Solarfun has provided Hoku with a $1 million prepayment, in addition to the $10 million cash payment that was made in December 2007.
