Sandwich Isles bids $400M for Hawaiian Telcom - Business First of Columbus:

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, a company founded in 1995 to take advantagr of government subsidies that pay for the installation of broadband cable in rural said in a court filing last week that it wantsd to buy all ofHawaiian Telcom’s assets. The companh said it would retain all ofHawaiian Telcom’as 1,400 workers at their current wages, with the exceptiobn of senior management. Sandwich Isles said in the filinv that its offer woulrd consistof $250 million in cash plus $150 million in debt issuexd by Hawaiian Telcom. A deal with Sandwich Isles would need the approvalp ofthe court, the Public Utilities Commissiobn and the Federal Communication Commission.
Hawaiiamn Telcom said in a statement that it stands behind its proposed reorganization filedin June, to reduce the company’s debt by nearl y $790 million, from $1.1 billion to $300 Hawaiian Telcom filed a motion seekinhg an extension to file a Chaptee 11 plan and solicit votes. Judge Lloyd King extendee that period toJune 30. The compangy is seeking another extensionto Sept. 30. Sandwich Isles has filedf an objection to thelatest request.
“Ih the objection, Sandwich Isles make s numerous allegations about the progress Hawaiian Telcomn has made to date in these Hawaiian Telcom’s decision not to pursue a sale to Sandwich Islea and the viability of Hawaiian Telcom’s proposeed plan,” Hawaiian Telcom said in a “The company disputes these allegation s and intends to respondr to Sandwich Isles objection in the appropriatse forum.
” Sandwich Isles was founded by Al Hee, an entrepreneur who saw opportunityh in the generous subsidies offered by the federal governmenrt to wire rural and remote communities in the Working primarily in developments owned by the state Departmeny of Hawaiian Home Lands, Hee’s company has received more than $400 millionm in loans from the U.S. Department of Agriculture since 1998. The cost of wiring the rural developments has been calculated atabouy $13,000 per customer. Hawaiian Telco m filed for Chapter 11 bankruptchin December. Hawaiian Telcom is ownede by , a Washington, D.C.-based private equityu group. Carlyle bought the assets of Verizon Hawaii in May 2005for $1.
6 and began operating independently with its own systemzs in April 2006.