Hawaiian Telcom issued the following list of questions and answers, concerning its bankruptcy filing today:

Q: I have heard you are bankrupt. Are you going out of business?

A: Absolutely not. Chapter 11 provides a way for Hawaiian Telcom to address its financial challenges in order to become a more viable entity, while continuing day-to-day operations.

Q: Are you looking to sell the Company again?

A: Our advisors are assisting us in exploring reorganization alternatives and these include converting existing debt to equity, raising additional equity and a sale of some or all assets. Our goal when considering any of these options is to create a stronger, more viable company for our customers. Unfortunately, due to the confidential nature of these discussions, we are not able to provide any further details at this time.

Q: What's going to happen while you are in Chapter 11?

A: The Company will continue to operate its business without interruption. In fact, we are stronger today than we were before we filed because the cloud of uncertainty has been removed and we can focus our time and energy on restructuring our balance sheet to ensure we are around for years to come.

Q: How do I know that you are not going to cut corners and try to save money now that you are in bankruptcy?

A: Hawaiian Telcom has been around for 125 years and we intend to be around for another 125 and more. We took this action so that we can strengthen our business, and cutting corners would be very counter-productive to our goal of emerging a stronger more viable company. In addition, we continue to roll out our strategic plan which includes the introduction of new products and services.

Q: Will you be cutting back on services?

A: Absolutely not. We continue to operate the business without interruption, will offer the same services as before, and look forward to offering a new suite of services

Q: I am still uncomfortable with the current situation and I would like to cancel my contract.

A: We understand that this may be a very unfamiliar process, and we apologize for the discomfort this has caused. I can assure you that the Chapter 11 will not change our ability to provide you service. We continue to operate the business without interruption, providing services to customers, paying employees and purchasing goods and services from our vendors and suppliers. Requests for contract terminations and/or refunds will be treated according to the terms of the sales contracts, consistent with our normal business practices.

Q: What about commitments and incentives you offered before the filing?

A: We intend to stand behind all commitments and incentives we offered prior to the filing. Our customers continue to be our number one priority.

Q: Will I still get the rebate I was promised?

A: Yes. As is customary, we have requested a court order authorizing us to continue to proceed with all of our customer programs and we fully anticipate this will be granted. Customers are our priority and we intend to stand by all of our customer commitments.

Q: Are you going to be raising your prices now that you have filed for Chapter 11?

A: Our prices have always been market-driven and they will remain that way in order for us to stay competitive.

Q: I was promised certain deals as part of my purchase contract. Will these still be honored?

A: Absolutely. As is customary, we have requested a court order authorizing us to continue to proceed with all of our customer programs and we fully anticipate this will be granted. Customers are our priority and we intend to stand by all of our customer commitments.

Q: Hawaiian Telcom has been having problems for years, why should customers continue to support the Company?

A: We intend to be around for many years to come and we hope you will remain our partner as we move through the restructuring process. We see our customers not just as those who buy our services, but more as partners that help us determine which services to offer, change, etc.

Q: Hawaiian Telcom has been talking about restructuring since October. Did the Company make any progress and why has it taken so long to take this action?

A: We understand your frustration. Unfortunately, restructuring is not a quick process. We want to make sure that the direction we take is in the best interest of the company, its customers, employees and other valued constituents. Moreover, we have made substantial progress since October. The new management team is fully engaged and up to speed, we have rolled out our new strategic plan which calls for the introduction of new products and services, and we made a variety of operational improvements.

Q: How is the PUC involved in this process?

A: Hawaiian Telcom works very closely with the Hawaii Public Utilities Commission and is keeping them up to date with our restructuring efforts.