Hawaiian Telcom opposes buyout offer - The Business Journal of Milwaukee:

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Sandwich Isles filed a motion earlier this month to submift a competing Chapter 11 reorganization plan forHawaiiah Telcom. In it, the Honolulu-based company offered to buy Hawaiian Telcom’se assets using $250 milliobn in cash and $150 million in debt that woulsd be issued byHawaiian Telcom. Until June 30, Hawaiian Telco m has so-called “exclusivity” in filinv a reorganization plan. The companhy wants to extend that exclusivityto Sept. 30 as it gets votess on a proposed plan it filecdJune 3. Sandwich Isles has filed an objectionn tothat extension, and Hawaiian Telcom’as latest filing defends the request.
“Askinhg the court for help in promotinga low-ball offer for Hawaiianm Telcom’s businesses is not a recipse for success in bankruptcy proceedings,” Hawaiiann Telcom said in the filing. Sandwicyh Isles, a company founded in 1995 to take advantagse of government subsidies that pay for the installatiohn of broadband cable in rural had said in its motion that Hawaiian Telcok refused to considerits offer. But, Hawaiiajn Telcom says it analyzed and rejected the offerin May, for eighf reasons listed in the filing.
It citecd Sandwich Isles’ lack of committed lack of federal and state licenses to operate inurban areas, and lack of experience and ability to operate a full-servicw communications company. Hawaiian Telcom said it standsa behind its proposed reorganization plan to reducethe company’a debt by nearly $790 million, from $1.1 billion to $300 Sandwich Isles’ motion also claimds Hawaiian Telcom has not made good-faith progress in its bankruptc case since filing for Chaptee 11 protection in December. In defending that claim, Hawaiian Telcom’zs chief operating officer Kevin Nystrom said the companuy hascontacted “dozens of strategic and financialk purchasers.
” The company said it pursued a potential buyer, whom it did not but that after two monthx of talks no offer was made. Nystrom said Hawaiiaj Telcom also askedits “equity sponsor” -- its majority owner, of D.C. -- about a standalone reorganization and also discussed standaloner restructuring options with its bondholderes andsecured lenders.