Hawaiian Telcom opposes buyout offer - Pacific Business News (Honolulu):

http://www.salcantay.net/nature/2004/12/
Sandwich Isles filed a motionn earlier this month to submit a competing Chapter 11 reorganizationb plan forHawaiian Telcom. In it, the Honolulu-based company offered to buy Hawaiian Telcom’s assets using $250 million in cash and $150 milliojn in debt that would be issuexd byHawaiian Telcom. Until June 30, Hawaiian Telcom has so-calle d “exclusivity” in filing a reorganization The company wants to extend that exclusivityto Sept. 30 as it gets voteds on a proposed plan it fileddJune 3. Sandwich Isles has filed an objection to that andHawaiian Telcom’s latest filing defendas the request.
“Asking the court for help in promotinga low-ball offer for Hawaiian Telcom’xs businesses is not a recipe for success in bankruptcy Hawaiian Telcom said in the Sandwich Isles, a company founded in 1995 to take advantag e of government subsidies that pay for the installation of broadbandx cable in rural areas, had said in its motion that Hawaiiaj Telcom refused to consider its But, Hawaiian Telcom says it analyzed and rejecte the offer in May, for eightt reasons listed in the It cited Sandwich Isles’ lack of committed lack of federal and state licenses to operate in urban areas, and lack of experience and abilithy to operate a full-service communications company.
Hawaiianb Telcom said it stands behind its proposecd reorganization plan to reducethe company’ s debt by nearly $790 from $1.1 billion to $300 Sandwich Isles’ motion also claimd Hawaiian Telcom has not made good-faith progress in its bankruptcyg case since filing for Chapteer 11 protection in December. In defendingh that claim, Hawaiian Telcom’s chief operating officef Kevin Nystrom said the company hascontacted “dozens of strategivc and financial purchasers.” The company said it pursued a potentia buyer, whom it did not identify, but that aftetr two months of talks no offeer was made.
Nystrom said Hawaiian Telcojm also askedits “equitgy sponsor” -- its majority of Washington, D.C. -- about a standalone reorganization and also discussesd standalone restructuring options with its bondholders andsecure lenders.