Hawaiian Telcom continued to lose money in May but the company said its cash holdings has improved since it filed for bankruptcy.

In its monthly filings with the U.S. Bankruptcy Court, Hawaiian Telcom said it lost $8.9 million in May, which compares with April's $6.1 million loss. Both months had lower losses than the $15 million the company lost in March.

But the state's largest phone company said its operating revenues rose by $200,000 and its cash holdings have grown to $100 million from about $75 million on Dec. 1, when the company sought bankruptcy protection.

Hawaiian Telcom is required to file detailed monthly financial statements with the bankruptcy court.

The company's net losses were largely up last month due to a $2.4 million increase in its operating expenses.

Hawaiian Telcom's bankruptcy-related costs also increased by $600,000 in May.

Founded in 1883, Hawaiian Telcom is the state's largest phone company, with 1,400 employees and annual revenues of more than $400 million.

The company filed for bankruptcy as a result of its crushing $400 million debt load and the loss of thousands of customers to wireless and other competitors.

As a result of its bankruptcy filing, Hawaiian Telcom suspended all of its interest payments to its bondholders, who hold about $500 million of the company's debt.

The company also received bankruptcy court approval to pay interest payments on a portion of the $500 million in bank debts that it owes.