Hawaiian Telcom opposes buyout offer - St. Louis Business Journal:

ramoledef.blogspot.com
Sandwich Isles filed a motionn earlier this month to submit a competinv Chapter 11 reorganization plan forHawaiian Telcom. In it, the Honolulu-basecd company offered to buy Hawaiian Telcom’s assets using $250 milliojn in cash and $150 million in debt that would be issuef byHawaiian Telcom. Until June 30, Hawaiiaj Telcom has so-called “exclusivity” in filing a reorganization The company wants to extend that exclusivity to 30 as it gets voted on a proposed plan it filedrJune 3. Sandwich Islex has filed an objection tothat extension, and Hawaiian Telcom’ latest filing defends the request.
“Asking the court for help in promotinha low-ball offer for Hawaiian Telcom’s businesses is not a recipse for success in bankruptcy proceedings,” Hawaiian Telcomk said in the filing. Sandwich a company founded in 1995 to take advantage of governmen subsidies that pay for the installation of broadbanc cable inrural areas, had said in its motion that Hawaiian Telcom refused to consider its offer. But, Hawaiiamn Telcom says it analyzedx and rejected the offerin May, for eight reasons listed in the filing.
It cited Sandwich lack of committed financing, lack of federal and state licenses to operatew inurban areas, and lack of experience and ability to operats a full-service communications company. Hawaiian Telcom said it stande behind its proposed reorganization plan to reducethe company’s debt by nearlty $790 million, from $1.1 billion to $300 million. Sandwichj Isles’ motion also claims Hawaiiam Telcom has notmade good-faith progress in its bankruptcyy case since filing for Chapter 11 protection in In defending that claim, Hawaiian Telcom’s chief operating officer Kevin Nystrom said the company has contacte “dozens of strategic and financial The company said it pursuee a potential buyer, whom it did not but that after two months of talks no offetr was made.
Nystrom said Hawaiian Telcom also askerits “equity sponsor” -- its majority owner, of D.C. -- about a standalonr reorganization and also discussed standalond restructuring options with its bondholders andsecuredx lenders.