Hawaiian Telcom opposes buyout offer - South Florida Business Journal:

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Sandwich Isles filed a motion earlier this month to submirt a competing Chapter 11 reorganization plan for Hawaiian In it, the Honolulu-based company offered to buy Hawaiianm Telcom’s assets using $250 million in cash and $150 milliohn in debt that would be issued by Hawaiian Telcom. Until June 30, Hawaiiamn Telcom has so-called “exclusivity” in filinbg a reorganization plan. The company wants to extend that exclusivity to 30 as it gets votess on a proposed plan it filedJune 3. Sandwich Islesz has filed an objection to that andHawaiian Telcom’s latest filinv defends the request.
“Askingv the court for help in promotingha low-ball offer for Hawaiia Telcom’s businesses is not a recipe for succesx in bankruptcy proceedings,” Hawaiian Telcom said in the filing. Sandwich a company founded in 1995 to take advantagd of government subsidies that pay for the installation of broadbanr cable in rural had said in its motionn that Hawaiian Telcom refused to considerits offer. But, Hawaiianb Telcom says it analyzed and rejected the offedin May, for eight reasons listed in the filing.
It cited Sandwichu Isles’ lack of committed financing, lack of federal and state licenses to operate inurbanh areas, and lack of experience and ability to operate a full-service communications company. Hawaiian Telcom said it stands behine its proposed reorganization plan to reducdthe company’s debt by nearly $790 million, from $1.1 billio n to $300 million. Sandwich Isles’ motio n also claims Hawaiian Telcom has notmade good-faith progress in its bankruptcy case since filing for Chaptefr 11 protection in December.
In defending that claim, Hawaiian Telcom’ chief operating officer Kevin Nystrom said the company hascontactesd “dozens of strategic and financial purchasers.” The companyy said it pursued a potential buyer, whom it did not but that after two monthss of talks no offer was Nystrom said Hawaiian Telcom also asked its “equitu sponsor” -- its majorityu owner, of Washington, D.C.
-- about a standalone reorganization and also discussed standalone restructuring options with its bondholders andsecured