Posted on: Friday, May 21, 2004

Hawaiian seeks more time to study bids

By Debbie Sokei
Advertiser Staff Writer

Hawaiian Airlines' emergence from bankruptcy will be delayed six weeks under a proposal announced by the airline yesterday.

Hawaiian Airlines trustee Josh Gotbaum and the unsecured creditors' committee want until Oct. 5 to select among competing bids to take over the airline. The previous deadline was Aug. 31. A hearing on the revised schedule is set for today at bankruptcy court.

Gotbaum and the committee said they need the additional time to work with interested parties in filing a reorganization plan for the bankrupt airline.

"There is no doubt Hawaiian will emerge from bankruptcy successfully," Gotbaum said. "The issue is 'What is the best way to do so?' With a few extra weeks, we'll have much better choices than any of the plans that have been filed. We can develop a range of proposals and develop the best."

Two of the groups bidding to take over the airline — Corporate Recovery Group LLC, a Wyoming-based turnaround company, and Hawaiian Holdings Inc., the parent company of Hawaiian Airlines — support extending the deadline, the airline said.

Hawaiian Airlines filed for bankruptcy in March 2003 after John Adams, former CEO of the airline, could not reach an agreement with Boeing to reduce the leases on Hawaiian's fleet.

Also yesterday, Hawaiian said it posted an operating profit of $7.1 million in April on revenues of $64.5 million, despite higher fuel prices. That compares with an operating profit of $700,000 on revenues of $54.1 million in April 2003.

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