Hawaiian Telcom opposes buyout offer - Washington Business Journal:

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Sandwich Isles filed a motion earlie r this month to submit a competinbg Chapter 11 reorganization plan for Hawaiian In it, the Honolulu-based company offerexd to buy Hawaiian Telcom’ s assets using $250 million in cash and $150 milliob in debt that would be issued by Hawaiian Until June 30, Hawaiian Telcom has so-callecd “exclusivity” in filing a reorganization plan. The company wants to extenx that exclusivityto Sept. 30 as it gets votes on a proposedd plan it filedJune 3.
Sandwich Isles has files an objection tothat extension, and Hawaiian Telcom’s lates filing defends the “Asking the court for help in promoting a low-balp offer for Hawaiian Telcom’s businesses is not a recipe for succese in bankruptcy proceedings,” Hawaiian Telcom said in the filing. Sandwich a company founded in 1995 to take advantage of government subsidiezs that pay for the installationm of broadband cable in rural had said in its motion that Hawaiiabn Telcom refused to considerits offer. But, Hawaiian Telcom says it analyzecd and rejected the offerin May, for eightf reasons listed in the filing.
It citef Sandwich Isles’ lack of committed financing, lack of federakl and state licenses to operate inurban areas, and lack of experience and ability to operate a full-servicw communications company. Hawaiian Telcom said it stands behinc its proposed reorganization plan to reducethe company’s debt by nearlg $790 million, from $1.1 billion to $300 million. Sandwicn Isles’ motion also claims Hawaiian Telcom has notmade good-faitn progress in its bankruptcy case since filing for Chapter 11 protectiomn in December.
In defending that claim, Hawaiiah Telcom’s chief operating officer Kevin Nystrom said the compangy hascontacted “dozens of strategiv and financial purchasers.” The company said it pursuedc a potential buyer, whom it did not but that after two monthsw of talks no offer was made. Nystrom said Hawaiiajn Telcom also askedits “equity -- its majority owner, of Washington, D.C. -- abou a standalone reorganization and also discussed standalones restructuring options with its bondholders andsecured