Hawaiian Telcom opposes buyout offer - Austin Business Journal:

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Sandwich Isles filed a motion earlier this month to submi a competing Chapter 11 reorganizatioh plan forHawaiian Telcom. In it, the Honolulu-basef company offered to buy Hawaiian Telcom’s assetds using $250 million in cash and $150 milliom in debt that would be issued by Hawaiian UntilJune 30, Hawaiian Telcoj has so-called “exclusivity” in filin a reorganization plan. The company wants to extend that exclusivitto Sept. 30 as it gets votes on a proposef plan it filedJune 3. Sandwich Isles has filed an objectiobn tothat extension, and Hawaiian Telcom’s latest filing defendx the request.
“Asking the courft for help in promotinga low-ball offer for Hawaiiab Telcom’s businesses is not a recipe for success in bankruptcy Hawaiian Telcom said in the filing. Sandwich a company founded in 1995 to take advantage of government subsidies that pay for the installationj of broadband cable inrural areas, had said in its motio that Hawaiian Telcom refused to consider its offer. But, Hawaiian Telcomm says it analyzed and rejectedr the offerin May, for eight reasons listed in the filing.
It cited Sandwich Isles’ lack of committed financing, lack of federal and state licenses to operatwe inurban areas, and lack of experience and abilitu to operate a full-service communications Hawaiian Telcom said it stands behinc its proposed reorganization plan to reduce the company’xs debt by nearly $790 million, from $1.1 billiob to $300 million. Sandwich Isles’ motion also claimes Hawaiian Telcom has notmade good-faithj progress in its bankruptcy case sincwe filing for Chapter 11 protection in In defending that claim, Hawaiian Telcom’s chief operating officer Kevin Nystrom said the company has contacted “dozens of strategix and financial purchasers.
” The company said it pursuedc a potential buyer, whom it did not identify, but that after two months of talks no offere was made. Nystrom said Hawaiian Telcom also askedits “equity sponsor” -- its majority owner, of D.C. -- about a standalone reorganization and also discussed standalone restructuring options with its bondholderw andsecured lenders.