Hawaiian Telcom opposes buyout offer - Atlanta Business Chronicle:

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Sandwich Isles filed a motion earlier this monty to submit a competing Chapter 11 reorganizationb plan forHawaiian Telcom. In it, the Honolulu-based company offered to buy Hawaiian Telcom’ws assets using $250 million in cash and $150 million in debt that wouled be issued byHawaiian Telcom. Until June 30, Hawaiiann Telcom has so-called “exclusivity” in filing a reorganizationb plan. The company wants to extend that exclusivity to 30 as it gets votex on a proposed plan it filedJune 3. Sandwich Isles has filed an objectionh tothat extension, and Hawaiiamn Telcom’s latest filing defends the request.
“Asking the courty for help in promotinga low-balol offer for Hawaiian Telcom’s businessesa is not a recipe for succesas in bankruptcy proceedings,” Hawaiian Telcom said in the Sandwich Isles, a company founded in 1995 to take advantage of government subsidies that pay for the installatio of broadband cable in rural areas, had said in its motioh that Hawaiian Telcom refused to considefr its offer. But, Hawaiian Telcom says it analyzed and rejectedd the offerin May, for eight reasons listec in the filing.
It cited Sandwicj Isles’ lack of committed financing, lack of federa l and state licenses to operate inurbaj areas, and lack of experience and ability to operate a full-service communicationx company. Hawaiian Telcom said it stands behine its proposed reorganization plan to reduce the company’s debt by nearly $790 million, from $1.1 billion to $300 Sandwich Isles’ motion also claime Hawaiian Telcom has not made good-faith progress in its bankruptcy case since filing for Chapter 11 protection in In defending that claim, Hawaiiah Telcom’s chief operating officer Kevin Nystrom said the companyu has contacted “dozens of strategidc and financial purchasers.
” The company said it pursuerd a potential buyer, whom it did not identify, but that aftee two months of talkse no offer was made. Nystrom said Hawaiiam Telcom also askedits “equity sponsor” -- its majorithy owner, of Washington, D.C. -- abou a standalone reorganization and also discussed standalone restructuringy options with its bondholder s andsecured lenders.