First Solar Shares Plunge On Project Delay

Published February 10, 2012 7:27PM (EST)

NEW YORK (AP) — First Solar is warning that a construction delay is threatening to undo its sale of large solar project planned for Los Angeles County to the power producer Exelon Corp.

The company said in a filing with the Securities and Exchange Commission on Friday that it has been unable to resolve a constructing permit issue. That's blocking the distribution of funds from a federal loan guarantee to help pay for the construction of the project.

First Solar shares fell $4.40, or 9 percent, on the news.

Under the terms of the $75 million sale, First Solar must buy the project back from Exelon if funding of the loan does not occur. First Solar has until Feb. 24 to resolve the issue and receive funding.

By Salon Staff

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