Posted at 11:40 a.m., Friday, March 28, 2003
Amfac settles pension dispute
Advertiser Staff
The state Employees' Retirement System has reached an agreement with Amfac Hawai'i and its subsidiaries to foreclose on two Maui golf courses to resolve a dispute over $66 million Amfac borrowed from the pension fund in 1991.The agreement was reached earlier this month and filed last week in a Chicago bankruptcy court where Amfac is trying to reorganize its debts.
Under the agreement, which is subject to court approval, the pension fund is expected to acquire the North and South links at Ka'anapali Beach Resort at foreclosure auction. Amfac also will pay the pension fund $250,000 in addition to an $11.3 million partial payment made earlier for loan delinquencies.
The settlement ends more than two years of state efforts to foreclose on the courses, which Amfac used as collateral for the loans.
