Hawaiian Telcom opposes buyout offer - Washington Business Journal:

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Sandwich Isles filed a motion earlier this month to submitg a competing Chapter 11 reorganization plan for Hawaiian In it, the Honolulu-based company offered to buy Hawaiianj Telcom’s assets using $250 millioj in cash and $150 million in debt that would be issuedc by Hawaiian Telcom. Until June 30, Hawaiiahn Telcom has so-called in filing a reorganization plan. The company wants to extend that exclusivityto Sept. 30 as it gets voteds on a proposed plan it filexdJune 3. Sandwich Islesw has filed an objection to that andHawaiian Telcom’s latest filingy defends the request.
“Askinyg the court for help in promotinya low-ball offer for Hawaiian Telcom’s businesses is not a recipe for successw in bankruptcy proceedings,” Hawaiianm Telcom said in the Sandwich Isles, a company founder in 1995 to take advantage of governmen t subsidies that pay for the installation of broadband cablse in rural areas, had said in its motion that Hawaiian Telco refused to consider its offer. But, Hawaiian Telcom says it analyzef and rejected the offerin May, for eighf reasons listed in the filing.
It citef Sandwich Isles’ lack of committed lack of federal and state licenses to operate inurbam areas, and lack of experience and ability to operatew a full-service communications company. Hawaiiaj Telcom said it stands behinc its proposed reorganization plan to reducethe company’s debt by nearly $790 from $1.1 billion to $300 million. Sandwicu Isles’ motion also claims Hawaiianm Telcom has notmade good-faith progress in its bankruptcu case since filing for Chapter 11 protection in In defending that claim, Hawaiian Telcom’z chief operating officer Kevin Nystrom said the company has contacted “dozens of strategicd and financial purchasers.
” The company said it pursued a potential whom it did not identify, but that after two months of talks no offer was Nystrom said Hawaiian Telcom also asked its “equitgy sponsor” -- its majority owner, of Washington, D.C. -- abou a standalone reorganization and also discusse standalone restructuring options with its bondholderx andsecured lenders.