Hawaiian shares struggle
By Kelly Yamanouchi
Advertiser Staff Writer
The share price of Hawaiian Holdings Inc., parent company of bankrupt Hawaiian AIrlines, fell to a 52-week low of 29 cents yesterday, the second in two days. Hawaiian shares recovered to close at 39 cents yesterday.
Hawaiian Airlines, which filed for Chapter 11 bankruptcy protection in March, announced on May 30 that ex-Liberty House chief John Monahan would run the airline during its Chapter 11 bankruptcy reorganization as trustee. Shares traded at 72 cents on May 30.
In a June 2 filing to the Securities and Exchange Commission that included the announcement of the selection of John Monahan, Hawaiian said: "No assurance can be given as to what values, if any, will be ascribed in the bankruptcy proceedings" to Hawaiian's pre-petition liabilities, common stock and other equity securities.
Hawaiian also said "it is possible that the Company's equity will be restructured in a manner that will substantially reduce or eliminate any remaining value. Accordingly, the Company urges that the appropriate caution be exercised with respect to existing and future investments in any of these liabilities and/or securities."
Asked to elaborate, Hawaiian spokesman Keoni Wagner said the company is in Chapter 11 and "there are uncertainties that go along with that."
Separately, Hawaiian said yesterday one of its aircraft lessors, International Lease Finance Corp., granted Hawaiian another 30-day extension of lease negotiations before the aircraft can be reclaimed. Provided the court approves, the new expiration date is July 21.
Hawaiian is one of several airlines financially hobbled by the drop in travel in the aftermath of the 9-11 terrorist attacks, the national economic slump and SARS outbreak.
Reach Kelly Yamanouchi at 535-2470, or at kyamanouchi@honoluluadvertiser.com.