Posted on: Saturday, April 9, 2005

Aloha seeks OK to accept loan

By Dan Nakaso
Advertiser Staff Writer

Aloha Airlines yesterday asked for U.S. Bankruptcy Court permission to accept another loan from Aloha Securities & Investment Company and the Ing Family Partnership, this time for $1.6 million.

In January, Aloha received a $3 million loan from both groups — Aloha Securities provided $2 million and the Ing Family Partnership loaned $1 million.

Under the latest loan proposal, Aloha Securities would provide $1.2 million in the form of five advances of $240,000.

The Ing Family Partnership would fund $400,000 in five advances of $80,000 each, according to Aloha's court motion.

The interest rate on both the $3 million and $1.6 million loans would be 6 1/4 percent.

Aloha Airgroup Inc., Aloha Airline's parent company, is privately run by family members of businessman Sheridan Ing and the late Hung Wo Ching. Aloha Securities & Investment Company previously was known as the Hung Wo Ching Partnership, according to the state Department of Commerce and Consumer Affairs.

According to the proposed loan agreement, the principal balance and interest on both loans would have to be repaid when either Aloha's reorganization plan is approved, the case is converted to a Chapter 7 liquidation or the bankruptcy case is dismissed by the court.

Aloha's bankruptcy attorneys asked the court to schedulea hearing on their motion for May 9.

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