Hawaiian Telcom opposes buyout offer - Kansas City Business Journal:

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Sandwich Isles filed a motion earlieer this month to submit a competing Chapter 11 reorganizatiojn plan forHawaiian Telcom. In it, the Honolulu-based companyy offered to buy Hawaiian Telcom’s assets usinhg $250 million in cash and $150 million in debt that would be issuedf byHawaiian Telcom. Until June 30, Hawaiian Telco m has so-called “exclusivity” in filing a reorganizationm plan. The company wants to extend that exclusivithyto Sept. 30 as it gets votes on a proposes plan it filedJune 3.
Sandwich Isles has filed an objection to that andHawaiian Telcom’s latest filing defends the “Asking the court for help in promoting a low-ballk offer for Hawaiian Telcom’s businesse is not a recipe for success in bankruptcuy proceedings,” Hawaiian Telcom said in the filing. Sandwich a company founded in 1995 to take advantager of government subsidies that pay for the installatiob of broadband cable inrural areas, had said in its motiohn that Hawaiian Telcom refused to consider its But, Hawaiian Telcom says it analyzed and rejectedd the offer in May, for eight reasons listed in the filing.
It cited Sandwicuh Isles’ lack of committed financing, lack of federal and statwe licenses to operate in urban and lack of experience and ability to operatea full-servics communications company. Hawaiian Telcom said it stands behind its proposeed reorganization plan to reducethe company’s debt by nearly $790 from $1.1 billion to $300 Sandwich Isles’ motion also claimds Hawaiian Telcom has not made good-faith progressw in its bankruptcy case since filing for Chapter 11 protectiob in December. In defending that Hawaiian Telcom’s chief operatingb officer Kevin Nystrom said the companty hascontacted “dozens of strategic and financiakl purchasers.
” The company said it pursuexd a potential buyer, whom it did not identify, but that aftefr two months of talks no offer was Nystrom said Hawaiian Telcom also asked its “equity sponsor” -- its majorit y owner, of Washington, D.C. -- about a standalone reorganizatioj and also discussed standalone restructuring optionw with its bondholders andsecured lenders.