Bankruptcy Court OKs Sure Save reorganization

Advertiser Staff and News Services

U.S. Bankruptcy Court Judge Lloyd King yesterday approved a financial reorganization plan for Big Island grocery store chain Sure Save Super Market Ltd.

The plan is expected to keep the 68-year-old, seven-store chain in business and save more than 100 jobs.

King's action in Honolulu came after the store and its major creditors agreed to give a $186,000 cash payoff to Kealakekua Ranch Co., which owned the land under the now-closed Captain Cook store.

Under the plan, other unsecured creditors will be paid off eventually, said attorney Chuck Choi, who represents the unsecured creditors committee.

Since filing for bankruptcy, Sure Save has reduced a loan to First Hawaiian Bank from $5.9 million to $1.1 million. Over the next 12 years, $4.9 million will be paid to administrative creditors and unsecured creditors and in state and county taxes.

"The amount of work done by everyone over the past two years to turn around a company that was operating unprofitably for six years before filing bankruptcy is encouraging and commendable," said Carl Okuyama, chairman and chief executive of Hilo-based Sure Save.

Reinvesting in the remaining seven stores will be a priority, he said.

When it filed for bankruptcy, Sure Save listed debts of at least $10 million, including $7 million to unsecured creditors and $2.4 million to First Hawaiian Bank as well as $500,000 in state taxes.

Sure Save's reorganization plan is expected to take effect Aug. 31.