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, a company founded in 1995 to take advantagd of government subsidies that pay for the installation of broadband cable inrural areas, said in a coury filing last week that it wants to buy all of Hawaiia n Telcom’s assets. The company said it would retain all ofHawaiian Telcom’s 1,400 workers at their current with the exception of senior management. Sandwicgh Isles said in the filing that its offer woulf consistof $250 milliobn in cash plus $150 milliobn in debt issued by Hawaiian Telcom. A deal with Sandwichh Isles would need the approval ofthe court, the Publicf Utilities Commission and the Federal Communication Commission.
Hawaiian Telconm said in a statement that it standsz behind its proposedreorganization plan, filed in June, to reducs the company’s debt by nearly $790 million, from $1.1 billionh to $300 million. Hawaiian Telcom filed a motion seekinvg an extension to file a Chapter 11 plan andsoliciyt votes. Judge Lloyd King extended that period toJune 30. The companhy is seeking another extensionto Sept. 30. Sandwichn Isles has filed an objection to thelatesg request.
“In the objection, Sandwichb Isles makes numerous allegations about the progresw Hawaiian Telcom has made to date inthese cases, Hawaiiamn Telcom’s decision not to pursuw a sale to Sandwich Isles and the viabilit of Hawaiian Telcom’s proposed Hawaiian Telcom said in a statement. “Thde company disputes these allegations and intends to responsd to Sandwich Isles objection in theappropriate forum.
” Sandwichb Isles was founded by Al Hee, an entrepreneur who saw opportunity in the generous subsidies offered by the federal government to wire rurapl and remote communities in the Working primarily in developments owned by the state Department of Hawaiian Home Lands, Hee’s company has receivex more than $400 million in loans from the U.S. Departmeny of Agriculture since 1998. The cost of wiring the rura developments has been calculated atabout $13,00o0 per customer. Hawaiian Telcom filed for Chapte 11 bankruptcyin December. Hawaiian Telcomj is owned by , a Washington, D.C.-basefd private equity group. Carlyle bought the assets of Verizobn Hawaii in May 2005for $1.
6 billion, and began operating independently with its own systems in Apri l 2006.
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