Posted on: Thursday, May 29, 2003

Ex-CEO of Liberty House on trustee list

By Dan Nakaso
Advertiser Staff Writer

Two men with experience running Hawaiian Airlines are no longer candidates to steer the company through bankruptcy as the Office of U.S. Trustee tries to conclude the search by tomorrow.

The trustee's office has been talking to a "handful" of candidates and hopes to submit one name to federal Bankruptcy Judge Robert Faris tomorrow.

Various candidacies have been discussed by the trustee's office, by a committee of Hawaiian's creditors and by airline lessor Boeing Capital Corp.

Paul Casey, who served as Hawaiian's chief executive, and Michael McQuay, Hawaiian's former executive vice president and chief operating officer, are no longer candidates, according to two people close to the appointment process who asked not to be identified because the names under consideration are expected to be kept confidential.

One name on both the creditors' and Boeing's lists of three candidates is John Monahan, former president and chief executive officer of Liberty House, according to the two sources. Monahan had been with Liberty House for more than a decade and helped lead it through a tumultuous three-year bankruptcy reorganization. He left after Liberty House was sold and became Macy's.

The other two names on both lists are people with airline backgrounds but who are said to have no strong Island connections.

Hawaiian Airlines, the state's largest airline, filed for bankruptcy protection in March. Boeing accused CEO John Adams of financial mismanagement and argued for the selection of a trustee while Adams denied the charge and fought to retain control.

Hawaiian's board of directors said Tuesday that it will not appeal Judge Faris' decision to appoint a trustee.

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.