Fourth investor group submits Hawaiian Air bankruptcy plan

Debbie Sokei
Advertiser Staff Writer

Vx Capital Partners, a San Francisco-based airline investment company, added its name to the list of investors interested in taking Hawaiian Airlines out of bankruptcy.

Yesterday was the deadline for potential investors to submit their preliminary reorganization proposals to the trustee and the unsecured creditors' committee.

Trustee Josh Gotbaum said he received several letters from investors expressing interest in taking over Hawaiian Airlines, but he declined to disclose their names.

"They are from institutions that are serious and capable of putting together successful plans," Gotbaum said.

Gotbaum and the committee have come up with the bidding process to encourage competitive bids. They will evaluate the reorganization proposals and submit the best offer to the bankruptcy court on June 14. A winning bid will be confirmed on Aug. 31.

Stephen Compagni Portis, a partner in Vx Capital, said his group proposes to invest $30 million to bring the airline out of bankruptcy. He said he plans to keep the current management team, pay creditors in cash and notes and will not ask for employee concessions.

Vx Capital joins three other groups bidding to take the airline out of bankruptcy. Corporate Recovery Group LLC, a Wyoming-based turnaround company; Hawaiian Holdings Inc., the parent company of Hawaiian Airlines; and Robert Konop, a Hawaiian Airlines pilot, have already filed reorganization proposals with the bankruptcy court.

Hawaiian Airlines filed for bankruptcy in March 2003 after John Adams, the chief executive at the time, could not reach an agreement with Boeing Capital Corp. to reduce the leases on Hawaiian's fleet.

Reach Debbie Sokei at 525-8064 or dsokei@honoluluadvertiser.com.