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The Honolulu Advertiser
Updated at 5:30 p.m., Friday, December 12, 2008

Hawaiian Telcom wants bankruptcy case moved to Honolulu

Advertiser Staff

Hawaiian Telcom Communications Inc.'s long-distance bankruptcy may become a local call if it has its way.

The company said it will file a motion on Monday to transfer its bankruptcy proceeding from a court in Wilmington, Del., to one in Honolulu where it has its headquarters and most of its about 1,400 employees work.

The company filed for bankruptcy on Dec. 1 in Wilmington, because it was incorporated under Delaware law and because the court is close to its advisers. Hawaiian Telcom said having the case there would mitigate costs.

But it said it has decided to seek a change of venue after discussing the move with various constituents and that it now considers the move will be a positive step in the restructuring process.

It has agreed to file a motion to approve a stipulation with the state of Hawai'i on transferring the case here. It anticipates a hearing on the request will be scheduled for Dec. 23.

It filed for bankruptcy after failing to reach an 11th-hour deal with its creditors, including bondholders who could have demanded hundreds of millions of dollars from the company.

Hawaiian Telcom said it has about 524,000 residential and business customers, $1.4 billion in assets and $1.3 billion in debts in its bankruptcy filing.