Federal judge keeps competing offers alive for Hilo Hattie
By Rick Daysog
Advertiser Staff Writer
A federal judge kept alive two competing offers to acquire bankrupt isle retailer Hilo Hattie.
U.S. Bankruptcy Judge Robert Faris let stand the last-minute sale of Hilo Hattie’s stock to local clothing manufacturer Royal Hawaiian Creations and set a July 15 hearing date on the disclosures for the company’s reorganization plan.
Faris also took no action on a separate offer by Maui Divers of Hawaii, whose offer is backed by vendors and other unsecured creditors.
“My obligation is to leave them both up there,” said Faris.
Honolulu-based Royal Hawaiian is the largest unsecured creditor in the Hilo Hattie bankruptcy, with a claim of $798,000, largely for unpaid merchandise. Royal Hawaiian is offering to invest $3 million in Hilo Hattie and keep the retailer operating.
Maui Divers, which operates jewelry concessions inside Hilo Hattie's seven stores, is owed $1.3 million. It is offering $1 million, which will be sued to repay company’s secured creditors, which includes banks and landlords.
Both proposals promise to keep Hilo Hattie's roughly 200 employees working, and continue business with dozens of vendors.
