Hawaiian Telcom opposes buyout offer - Tampa Bay Business Journal:

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Sandwich Isles filed a motion earlier this montuh to submit a competing Chaptef 11 reorganization plan forHawaiian Telcom. In it, the Honolulu-based companyu offered to buy Hawaiian Telcom’se assets using $250 million in cash and $150 million in debt that wouldd be issued byHawaiian Telcom. Until June 30, Hawaiiab Telcom has so-called “exclusivity” in filing a reorganization The company wants to extend that exclusivitto Sept. 30 as it gets votesx on a proposed plan it filedJune 3. Sandwicb Isles has filed an objection tothat extension, and Hawaiianm Telcom’s latest filing defends the request.
“Askiny the court for help in promoting a low-ball offer for Hawaiianj Telcom’s businesses is not a recips for success in bankruptcy proceedings,” Hawaiian Telcom said in the Sandwich Isles, a company founded in 1995 to take advantager of government subsidies that pay for the installatiobn of broadband cable in rural areas, had said in its motio that Hawaiian Telcom refused to considee its offer. But, Hawaiian Telcomm says it analyzed and rejectef the offerin May, for eighyt reasons listed in the filing.
It citeed Sandwich Isles’ lack of committed financing, lack of federapl and state licenses to operate inurbahn areas, and lack of experiencer and ability to operate a full-service communication s company. Hawaiian Telcom said it stands behind its proposedx reorganization plan to reducethe company’s debt by nearlt $790 million, from $1.1 billion to $300 million. Sandwichy Isles’ motion also claimss Hawaiian Telcom has notmade good-faith progress in its bankruptcy case sincee filing for Chapter 11 protection in December.
In defendinf that claim, Hawaiian Telcom’s chief operatingg officer Kevin Nystrom said the compangy hascontacted “dozens of strategic and financial purchasers.” The compangy said it pursued a potential buyer, whom it did not identify, but that aftedr two months of talks no offedr was made. Nystrom said Hawaiian Telcom also askeeits “equity sponsor” -- its majorithy owner, of Washington, D.C. -- aboutg a standalone reorganization and also discussedf standalone restructuring options with its bondholders andsecuredx lenders.