Trustee: “Have Better but More Complicated Proposals, and Need Time to Analyze Them”
HONOLULU -- Hawaiian Airlines Trustee Joshua Gotbaum and the company's Official Committee of Unsecured Creditors today filed a joint motion in U.S. Bankruptcy Court seeking a four-week extension to analyze the proposals they have received. Under the current deadline, all plans for Hawaiian, including Gotbaum and the Committee's, would have to be filed by July 29.
Gotbaum said they had proposed the additional time because, although the proposals they received are far better than the plans already filed, they are also more complicated. He said that, for these more complicated proposals, it would take longer to be sure that the necessary financing could be secured reliably and on the terms that have been proposed.
“The whole purpose of restructuring Hawaiian is to secure the best possible plan, taking into account the interests of creditors, shareholders, employees, and everyone else that is essential to the airline's success,” said Gotbaum. “Hawaiian is doing well, and that has attracted more and better proposals. Now we need to understand them and negotiate the best one. Unlike some other airlines, we think it's in Hawaiian's best interests to take the time and get it right.”
Gotbaum and the Committee are continuing to work with two of their original potential investors. They have also received and are reviewing a proposal from Ranch Capital, which now controls Hawaiian Holdings.
Ultimately, Gotbaum and the Creditors Committee will team up with one investor and propose a joint plan of reorganization to the bankruptcy court for Hawaiian to exit bankruptcy.
The new schedule as proposed for Hawaiian to exit bankruptcy is:
August 30, 2004: Deadline to file plans of reorganization.
September 9: Deadline to make material modifications to plans.
September 30: Disclosure statement hearing (subject to court availability).
November 15 or later: Confirmation hearing (subject to court availability).
About Hawaiian Airlines
Hawaiian Airlines, the nation's number one on-time carrier, is recognized as one of the best airlines in America. Business travelers recently surveyed by Condé Nast Traveler rated Hawaiian Airlines as having the best in-flight service and meals of any U.S. carrier. In addition, Hawaiian is ranked as the nation's fifth best airline overall by Travel + Leisure, ahead of every other carrier flying to Hawaii.
Celebrating its 75th year of continuous service, Hawaiian Airlines is Hawaii's biggest and longest-serving airline, and the second largest provider of passenger air service between Hawaii and the mainland U.S. Hawaiian offers nonstop service to Hawaii from more mainland U.S. gateways than any other airline. Hawaiian also provides approximately 117 daily jet flights among the Hawaiian Islands, as well as service to Australia, American Samoa and Tahiti.
Hawaiian Airlines, Inc., is a subsidiary of Hawaiian Holdings, Inc. (AMEX and PCX: HA). Since the appointment of a bankruptcy trustee in May 2003, Hawaiian Holdings has had no involvement in the management of Hawaiian Airlines and has had limited access to information concerning the airline. Additional information is available at www.HawaiianAir.com.