Judge puts off decision in Hilo Hattie case - Tampa Bay Business Journal:

showarticle-cultura.blogspot.com
The plan would also cancel the concession agreement that Maui Divers Jewelry has with Hilo Hatti e at itsseven stores. The amended plan was submittecdon Friday, a week after Donalc B.S. Kang, president of garment manufacturedr RoyalHawaiian Creations, acquired 100 percenyt of Hilo Hattie stock on June 19 for undisclosed Even though the stock has changecd hands, the fate of the company and its debtsd and assets remains tied up in bankruptcu court. Kang has said he has $1 milliomn in cash that would be used to immediately fund a line of credit for the His attorney, James told U.S.
Bankruptcy Judge Robert Farisx at a hearing Monday that Kang hasanother $2 millionm in credit lined up with Firsg Hawaiian Bank that would be used afterd the company emerges from bankruptcy reorganization. That couled be as early as September, Wagner told PBN. Wagnere also told the who lifted a suspension onHilo Hattie’s ability to that Kang would inject $500,000 cash into the business, and anotherr $500,000 in inventory until the Chapter 11 plan is Faris on Monday delayed a decision until July 15 on the efforty by Maui Divers Jewelry to buy Hilo Hattie.
Maui Divers offered to pay $1 million for the compang at closing and then to immediatelyinjectg $2 million in capital into the operations. Maui plan had the support of the committee ofunsecurex creditors, and an attorney for Generall Growth Properties, which is the landlord for two of its stores, said the companu had worked out a deal for the leases at Ala Moanaz Center and Prince Kuhio Plaza in Maui Divers had not reached agreement with the landlordsd of its five other stores, sayingh the landlords would not agree to a deal until they knew whetherr Maui Divers would becomde Hilo Hattie’s new owner.
Wagner, told the judge that Kang had agreementds withthose landlords, but not with Generap Growth. The mall owner, which is also in Chapter 11 was concernedthat post-bankruptcy Hilo Hattie stores would not contain Maui Diver concessions, which generate some 50 percent of the store’s according to General Growth’s attorney Ivan When Faris questioned Wagner about what would happenb if Hilo Hattie was unable to renegotiate a concession agreement with Maui Divers, Wagner said therwe were other concessions, other jewelry companiesx that could presumably take its place. “The debtodr is not averse to having MauiDiverws concessions,” Wagner told the court.
“W e can’t force Maui Divers to come to the bargaining Maui Divers President and CEO Bob Taylor declined to commeng after the hearing about the offer or the proposed cancellation of the concessions at the HiloHattire stores. The attorney for the committes ofunsecured creditors, Ted noted that Maui Divers had placer a $50,000 deposit on the deal. “Asw of today, Maui Divers has not asked for a refund oftheirf deposit, which I take as an indication that they are proceeding with their he told PBN. Pettit had argued that Kang’ acquisition of the Hilo Hattie stock was subject to courtf approval as part of the bankruptcy but Faris said that itwas not.
Faris also delayed ruling on the committee’as motion to appoint a Chapter 11 as well as a motion bythe U.S. Trustes to convert the case to Chaptee 7 liquidation or dismissit altogether. Kang took over as president and CEO of the compang last week after CEO Ted Nelsonb and President John Scott Craig Bingham remained CFO while adding the titles treasurert and executivevice president, while Mark who was treasurer, is now chief operating officer and executivr vice president.
David who is Kang’s is now executive vice president and secretary of the andTerri Funakoshi, Hilo Hattie’z general merchandise manager, was promoted to executive vice president of