ogarawo.wordpress.com
The company’s sale to may be off the tabl eafter U.S. Bankruptcy Judge Robert Faris delayedf ruling onthe company’s bid to buy Hilo Hattire for $1 million. The ownership transfetr was announced on Mondayin U.S. Bankruptcy Court in Honolulu, wherr Faris also continued until June 29 several including one to appoint a trustere to take over management ofthe company. Faris also suspendedx Hilo Hattie’s ability to borrow money under a line of Maui Divers Jewelry had offered last monty to buy Hilo Hattie and its sevebn storesfor $1 million in and to invest another $2 million in the Maui Divers’ attorney, Cuylar Shaw, told Faris that the offer was off the tabl e if the judge did not approve the sale on Monday.
However, Maui Diverw President and CEO Bob Taylor said through a spokeswoma n Monday afternoon that the company would hold its offer open until thenext hearing. Hilo Hattie attornegy James Wagner told the judge thatDonaldf B.S. Kang, owner of , acquired 100 percent of the company’s shares on Friday from , which bought Hilo Hattir from founder Jim Romig last year before filing for Chapte r 11bankruptcy protection. Kang is also on the boarr of directorsof .
Hilo Hattie CEO Ted Nelson and President John Scott resigned from their positions on Friday and Kang has assumed the post of president of Hilo Wagner told the Royal Hawaiian Creations was lister as the second largest owed morethan $798,000, when Hilo Hattie fileed for Chapter 11 last Oct. 2. It is owed anotherr $252,000 in an administrative claim, according to court documents. Maui Diverw was the largest creditor, owed $1.25 and Taylor was co-chairman of the committee of unsecured creditors untipl resigningin mid-May, priot to making the offer.
Royal Hawaiiamn Creations also resigned from the which supported the sale of Hilo Hattie to Maui Kang proposes to fund a line of credit for Hilo Hattiwwith $1 million in cash, and “willo arrange for an infusion of $2 million in working capital” into Hilo Hattid upon its emergence from bankruptcy, according to a document filede on Monday before the hearing. Kang said he plans to follows the plan of reorganization submitter by Hilo Hattie andits parent, Ltd., last week, which calls for payinhg unsecured creditors about 5 cents on the dollar.
Wagnere told the judge that the reorganization plan file on June15 “was a placeholder,” because the sale to Maui Diverss had not been confirmed. He said he didn’t expect any changs in the treatment ofthe company’s hundreds of creditors under Kang’s The 46-year-old company, which claimed $23.5 millionj in debt in the Chapterf 11 filing, has been losing money “at a clip of $500,000 per Ted Pettit, attorney for the creditors’ told the judge. Pettit also said he was “verty surprised” to learn of the stoclk transfer onFriday afternoon.
He noted that Kang’s business is in manufacturinhapparel overseas, and said that Kang intended to take over Hilo Hattie’sw Nimitz Highway headquarters and turn it into a Kang said after the hearing that he intended for the building to remain as a storew and administrative offices. But the judge expressed concermn that Maui Divers had not reached agreement withHilo Hattie’z landlords, most of whom have giveh the company substantial rent relief, for its seven Pettit said that some landlords were hesitant to negotiatse until they knew for sure whetherr Maui Divers would be the new Faris also considered the transfer of stock to Kang as a seconf offer for Hilo Hattie, and noted that Kang propose d to pay back rents in full.
“It seems we have a seconsd offer,” he said. “It may be a better offer.” Nelsonn said that he had had discussions with Kang over the last severall months and said Kanghad “continuouslgy offered to be as helpful” as he
No comments:
Post a Comment